Trading Plan for 6/29

Tuesday’s rally couldn’t have started… any later. Monday’s rally gained no traction through its close. Its 1278.00 pullback target was touched just minutes before Tuesday’s open, which didn’t even gap above Monday’s high. But the intraday move never corrected on the way to fresh highs.[pay]

Pattern points… (Setups and technicals)
Monday’s rally gained no traction because it was retraced too far, for too long. That didn’t prevent the rally from extending, it just couldn’t predict it. Meanwhile, the rally could have reversed down.

Tuesday’s rally didn’t gain traction, for a different reason. Its 1293.00 target was met (essentially) at the close. It wasn’t exceeded, which would have put into play a higher target. The rally may resume Wednesday, but no signal has put it into play.

Sellers didn’t gain traction either Tuesday, just like Monday. The rally can signal it is extending higher again by maintaining almost any improvement above 1293.00. But a decline can be triggered by immediately breaking back under Tuesday’s last relative low at 1288.00.

What’s Next… (Outlook and opportunities)
Interesting developments have come onto Wednesday’s calendar with another Greek vote starting at 7:00am ET. The econ calendar has other items, too. But if the vote’s reaction hasn’t triggered a deep opening dip, then later news probably won’t either.[/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.