Trading Plan for 3/20

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Pattern points… (Setups and technicals)[pay]
Perhaps the only thing bearish about Monday’s close was it failed to recover back above the afternoon’s 1404.25 bias-up signal. That’s not very bearish, and other bullish elements remain intact, so not rallying Tuesday would be very bearish.

Just entering the session’s last hour above the 1405.00 prior low meant a later dip’s sponsorship was probably weak hands. Closing above the 1403.75 overnight high also suggests that sellers didn’t gain traction.

There are attractions above. Most notable is the afternoon’s 1410.25 bias-up target, that has now become “unfinished business.” Meanwhile, a pullback is underway targeting 1402.25, and potentially 1401.00.

Tuesday’s open must break cleanly under 1401.00 to begin signaling momentum has reversed down. Otherwise, fresh highs could test 1410.00 before finally reversing down.

[/pay]What’s Next… (Outlook and opportunities)[pay]
At least a retest of Monday’s 1408.00 highs — presumably to also test Monday afternoon’s 1410.25 bias-up target — remain outstanding. Like Monday, an open under a prior low is needed to reverse momentum down. [/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.