Trading Plan for 3/25

Thursday’s buyers didn’t lose traction… closing above the morning’s high. They even left unfinished business above, at the 1306.75 high’s overbought RSIs. The last half-hour’s dip down to 1304.00 wasn’t sponsored by strong hands since they don’t initiate moves during that timing window. In fact, just trending up through 3:10-3:20 timing window had already put into play 1311.00 with potential to 1314.00.[pay]

Pattern points… (Setups and technicals)
So, touching 1306.75 about one hour after the cash session close wasn’t surprising*. Spiking up to 1314.00 five minutes later was kind of a shock. It also fulfilled the pattern’s objective. Price settled back down to 1308.25 just before 5:30’s half-hour maintenance close.

I haven’t yet tracked down the news, but I wonder whether anyone has checked Kadaffy’s pulse lately. If something that macro were the spike up’s cause, then its high would easily hold any retest.

*Actually, touching 1306.75 after the close was a little surprising. Firming at all was a little surprising, since RIMM was trading down 10% on lower guidance. If the spike up’s news is macro, then trending up into the weekend could depend upon other news off-setting RIMM’s.

What’s Next… (Outlook and opportunities)
1308.00 happens to be the sell signal off of 1314.00. Maintaining a break under 1308.00 would target 1298.00. The pullback limit for 1314.00 is 1310.50. Quickly recovering 1310.50 would target 1314.00‘s retest. And maintaining a break above 1314.00 would create potential to 1324.75. [/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.