Trading Plan for 8/14

If at first they don’t succeed… or at second, or at third, or at seventh… Sellers will try, try again to break lower. And buyers will absorb their attempts. It became glaring last Thursday that sellers were not gaining traction for their efforts. It is starting to become glaring that buyers aren’t exploiting that.

Pattern points… (Setups and technicals)[pay]
Unfinished business above at 1402.00, just like Friday, completed Monday afternoon’s recovery from the morning’s decline. The morning’s decline had tried to reject the overnight rally. The overnight rally had tried to recover from… It’s like a ping-pong match.

In the process of chipping away at resistance Monday, there was more chipping away at 1393.50-1394.25 support. It remains unlikely to prevent a much deeper drop when tested — if ever tested — from a new relative high, like 1406.00-1407.00.

An earlier test of 1402.00 Monday would have produced fresh highs at 1406.00-1407.00 before the close. Its eventual test remains likely, and its test is getting likelier to visit 1412.00. Simply breaking back under 1393.50-1394.25 would make any fresh high much less likely.

[/pay]What’s Next… (Outlook and opportunities)[pay]
More than a week of slow economic news will end as of Tuesday morning. Perhaps that’s what was holding back the rally. Or holding up the market.[/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.