Trading Plan for 7/25

If sellers aren’t retaking control early Friday… then the impending weekend’s illiquidity might have different plans in mind for the day. Quite different.

Pattern points… (Setups and technicals)[pay]
Thursday’s session tested all of the relevant levels, while fluctuating around Wednesday’s ~1983.00 high. It was the first session to range exclusively above July 3’s range — at least, intraday.

The session also tested all relevant levels. The room for noise above 1982.00 to 1984.75 contained the opening surge. The morning’s 1985.75 high was a retest of the overnight high’s “new Globex trend extreme.” And the afternoon’s relatively wide swing closed back at 1982.00.

A last-minute sell signal triggered, and extended through the close to 1978.00. And lower. So much for avoiding July 3’s upper-end, which the late dip pierced.

Even before returning to July 3’s range, the pattern doesn’t reflect accumulation. There are no technical or structural objectives outstanding above. Nothing is attracting price higher, except by default since nothing is attracting price down.

[/pay]What’s Next… (Outlook and opportunities)[pay]
That may seem like an accident waiting to happen. That’s only because it is. But the situation can persist indefinitely. In fact, the weekend’s impending illiquidity can cause Fridays to be explosive. So, especially with this being a Friday, the alternative to triggering bias-down in the morning could easily be significantly higher highs intraday.[/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.