Trading Plan for 3/12

If WedEx triggers an actively bullish signal… then it wouldn’t be very credible after rallying throughout Tuesday. So, just the potential for extending the rally much more seems to depend upon dipping Tuesday. An actively bearish WedEx also depends upon dipping Tuesday.

Pattern points… (Setups and technicals)[pay]
1553.50 became “unfinished business above” for being Monday afternoon’s bias-up target, and not rejecting the underlying signal. Piercing the 1548.25 bias-up signal by only 1-tick coming out of the bias environment quickly recovered to a fresh high attacking 1551.00. And a fresh low at 1547.50 into the last half-hour was recovered back to the high.

Of course, the last  recovery did not accomplish anything that wasn’t done already before the last dip. So far, the late recovery is only noise, and not the product of new sponsorship. Whatever it is, it is not in itself bullish or bearish.

The last hour’s resemblance to Friday’s session-long swing suggests that the same sponsorship influenced both windows. And that sponsorship’s objective was fulfilled by producing a new high close.

[/pay]What’s Next… (Outlook and opportunities)[pay]
Extending higher immediately Tuesday to fulfill the 1553.50 target would allow the balance of the session to trend down. Extending up without first refueling might not be immediately bearish, but the rally’s life would depend upon accelerating its pace into a blow-off. Perhaps the most bearish scenario would form a Pivot Reversal: Gapping down in the uptrend, and recovering temporarily to probe new highs before reversing back down to close under morning’s low.  [/pay]

Look for at least one update overnight or ahead of the Morning Market Tour… My thoughts on the day’s econ calendar are linked here.