Trading Plan for 5/15

If Wednesday afternoon’s drop was related to expiration… then so was the prior six timing windows ranging narrowly. Buyers weren’t enthusiastic about probing fresh highs, but they defended against sellers retaking control.

Pattern points… (Setups and technicals)[pay]
WedEX nearly triggered, the parameters in yesterday’s Trading Plan defined the 1885.00 prior highs as a relevant level. Despite ending yesterday at 1894.00 and bouncing overnight to 1897.25, the afternoon’s drop tested 1885.00 down to 1882.25.

Holding the test of 1885.00 or breaking it would have triggered either passively bullish or actively bearish, respectively. But it didn’t break lower, nor did it hold. It was still being overlapped at the close.

Actually, testing 1885.00 from above places a little greater burden of proof on sellers. Regardless, a WedEX signal is still possible Thursday, if its open were far enough above or below 1885.00.

[/pay]What’s Next… (Outlook and opportunities)[pay]
It’s difficult to envision probing fresh highs. But that doesn’t require triggering a bullish WedEX, which would control the Friday afternoon to Monday morning time frame. [/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.