Trading Plan for 4/12

Wednesday’s gap up tried… extending higher intraday. But buyers never gained traction, and the balance of the session was essentially biased downward. That’s not bullish.

Pattern points… (Setups and technicals)[pay]
Sellers never regained traction after Wednesday’s gap up. Will buyers be rewarded for that?

Several intraday dips under relevant support were recovered through relevant timing windows, preventing their sponsorship from gaining traction. There was the opening hour’s two dips to or through 1366.25, and then the morning bias environment exit’s dip to 1364.00. Later, 1364.00 low was tested during the 3:10-3:20 window, and still being tested into the close.

Sellers just couldn’t gain traction for their efforts.

This template normally rewards buyers by producing fresh highs. The morning’s 1370.50 high was too shallow to qualify. There is nothing unordinary about not rewarding buyers — it’s just not usual.

Buyers can’t afford to hesitate after gaining no traction Wednesday, holding a probe above the 1369.00 area prior highs, closing back under 1366.00, and leaving a gap outstanding back to Tuesday’s 1353.50/1357.00 close.

[/pay]What’s Next… (Outlook and opportunities)[pay]
Resuming the decline abruptly from Wednesday’s inside day — gapping down back under Tuesday afternoon’s 1360.00 area highs — would still make for an ugly morning. But gapping down too much more could also make the ugly morning more easily recoverable.[/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.