Trading Plan for 4/21

If Last week’s rally had expended any more energy… then buyers might have gotten something for their effort.

Pattern points… (Setups and technicals)[pay]
Although it was probed intraday by more than 2-3 points, 1860.00-1861.00 resistance held through Thursday’s close. Closing above it would have put into play 1868.00-1871.00 and potentially 1875.00 and 1879.00.

So, a lot of buying pressure was expended Thursday just to attack last week’s last relative high. In fact, a lot of buying pressure was expended all week. And the week’s lows weren’t even accumulative, only attacking prior lows without probing them before rallying

Either Monday’s open quickly recovers 1860.00-1861.00 to resume the uptrend, or the alternative would target and possibly break under 1852.00-1853.00. Any lower would signal a downleg underway, perhaps the downleg, or just another leg down to recent lows. The outstanding trend change signal suggests the former while also making the current bounce a temporary correction.

I noted in the Daily Spot that three markets aren’t reflecting any fear, and that’s ahead of a three-day global holiday. Gold fell, Crude Oil held its rally target’s test, and the long-bond retraced its flight-to -safety excess. Let’s hope they’re right, and look out if they’re not.

[/pay]What’s Next… (Outlook and opportunities)[pay]
This being a holiday weekend, don’t forget that there is no Saturday Strategy Session. I did address the bigger picture in Thursday’s post-close Market Wrap. Enjoy![/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.