Trading Plan for 4/26

Deja vu, all over again? Trading this close to the highs, on this little volume, with so little volatility… What could possibly go wrong?[pay]

Pattern points… (Setups and technicals)
Monday offered another afternoon of narrow ranging. This time, 1331.00 defined the midpoint, vs. 1332.75 Thursday afternoon, and Sunday night.

“Midpoint” may not be the right term, so much as “magnet.” Perhaps that makes clearer why entering a relevant timing window either above 1332.75 or under 1331.00 is likely to extend in that direction.

And trending should be aggressive at this stage of this pattern. Gapping up or down becomes likelier, the longer that intraday action is confined within a range.

While a dip remains possible, it’s not likelier than first probing new highs up to 1339.50. Dipping first is likelier to recover for new highs, and less likely to extend down.

What’s Next… (Outlook and opportunities)
Monday’s session tested both of the morning’s bias signals, without triggering either. Gapping up or down is likelier to recover, if not from the opening tick, then during the morning.[/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.