Trading Plan for 6/13

Sellers had an opportunity Tuesday morning… to capitalize on having absorbed Sunday night’s buyers. To capitalize on having retraced back to Friday’s lows. To reverse momentum down. They tried, but failed, and the balance of the session rallied to a new recovery high close…

Pattern points… (Setups and technicals)[pay]
Tuesday’s last hour was entered under the bias environment’s 1312.25 high, which was exited under the noon hour’s high, also 1312.25. Strong hands were not the sponsors of the last half-hour’s breakout to 1317.50 and then on to 1320.50.

And as noted Tuesday morning, there was all sorts of resistance from 1311.00 up to 1317.00. That resistance was tested, and held — through the cash session close.

Closing above the session’s prior intraday highs still gained traction. That makes some higher high likely Wednesday — not simply noise, but an actual trending effort. Closing under 1314.00 would have made higher highs unlikely, but now an early pullback (or overnight) could test 1311.00-1313.00 before making a recovery unlikely.

Since Tuesday’s closing action trended up, gapping open under the afternoon’s 1308.25 bias environment low would trigger a session-long decline. Otherwise, the gap back to Monday’s 1339.50 open will try to attract price higher Wednesday.

[/pay]What’s Next… (Outlook and opportunities)[pay]
Here come the economic reports, the week’s first data of consequence. Momentum may help to absorb it, but that momentum may be sorely missed when Thursday’s heavier calendar hits.[/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.