Trading Plan for 4/15

[pay]Pattern notes.
Once back under 844’00 Tuesday, the market was unable to recover. Perhaps it remained under pressure due to day’s speeches. They offered nothing new, so perhaps the subsequent lack of recovery was paralysis ahead of INTC earnings. So, who was being restrained – buyers, or sellers? The morning’s drop expended a lot of selling pressure, and there was sufficient time to gravitate higher.

The morning’s drop never extended lower intraday, but I still consider it to have been productive since 844’00 wasn’t recovered. Gapping open Wednesday above 844’00 would suggest sellers weren’t that productive after all. Otherwise, Tuesday provided yet another set of evidence that the recent ranging around 844’00 has been distribution, not basing to launch another upleg.

Indicators and Internals.
Technicals left no unfinished business at Tuesday’s cash session close. The first reaction down on INTC’s earnings did get a bounce from 1-minute MACD & RSI diverging positively, but that has already resolved in a lower low.

Wednesday’s opportunities.
The post-close reaction to INTC’s earnings gapped down and quickly met the afternoon’s 834’75 bias-down target, next targeting 830’25. Lower lows soon came within 3 points. If a gap remains open back to Tuesday’s ~840’00 close, it won’t require being filled, but filling it would likely include a test of 844’00. The econ calendar is busy, including the afternoon’s Beige Book. [/pay]