Trading Plan for 3/20

[pay]There’s probably more than a one-day slide required as the consequence for Wednesday’s rejection of its opening probe to new recovery highs. Closing under ESm 1307’00-1308’00 kept alive this downleg’s momentum, and that remains valid for Thursday’s open. The bounce limit would become 1288’00-1290’00 if Thursday’s open were to gap down to 1285’00.

Jobless Claims is at 8:30, and then LEI at 10:00, timing that tends often either to accelerate or to reverse any initial trending underway. Quadruple-witch expiration, one day earlier than normal, and the impending three-day illiquidity, should make this an interesting session.

Above the market there is no unfinished business, only a massive question mark after two days of ranging well above the Monday’s highs. If Thursday’s session can avoid any deeper dip, next week could extend the bounce sharply higher. In other words, Thursday might be the last chance for sellers to retake control for a bigger downleg. If they succeed, the bigger downleg would target ESm 1248’50 and 1231’50 before having a chance to bottom.[/pay]