Trading Plan for 7/22

Tick, tock… Immediate weakness after Wednesday’s close led to much volatility overnight. A significant reversal would have developed, but for a last-minute surge back into and through Tuesday’s range. That’s a lot of buying pressure in a short time, and a breakout is most vulnerable when it is fresh. [pay]

Pattern points… (Setups and technicals)
Thursday afternoon’s bias environment was exited above the 1339.50 bias-up signal. Its 1344.50 bias-up target became unfinished business above. It was touched soon after the Globex open, but could still be probed by an additional point.

1344.50 is Friday morning’s bias-up signal. Its target is 1349.50, but this leg’s next objective is 1352.50-1353.50. That would be a formality, since closing above 1349.50 would next the 1370‘s.

That’s if the bias-up signal is triggered. Holding its test as resistance would be quite a different story.

Reversing down would target 1330.50, and potentially 1325.00. Also testing 1323.50 support would be likely, and closing under it would signal a new downleg underway.

What’s Next… (Outlook and opportunities)
New trend highs, already probing higher overnight, why would the pace slow? The pace already slowed. Thursday’s last two timing windows ranged sideways, around the morning’s 1341.50 high. Almost anything less than surging at Friday’s open would be unlikely to suddenly extend higher, and would be likelier to reverse down.[/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.