Trading Plan for 8/15

If WedEX had triggered after probing a prior high or low… then strong trending would have been likely. Whether an active signal or passive, probing lows that have been attacked for so long would have substantial consequences. But Wednesday avoided testing both prior highs and lows.

Pattern points… (Setups and technicals)[pay]
Wednesday’s sellers gained traction by closing under the afternoon’s bias environment low, which was under the noon hour low. Not that the sponsorship was strong-handed, since it was an “inside day,” i.e. trading entirely within Tuesday’s range. There is no required resolution, but there are specific requirements to specific resolutions.

In other words, Tuesday’s slide is not required to extend any lower Wednesday, but extending any lower Wednesday would be required to be productive and test a relevant lower objective. Neither is Tuesday’s slide required to recover Wednesday, but recovering Wednesday would require gapping up.

Meanwhile, recall that Tuesday’s buyers had gained traction. While that did enable recovering the overnight drop, albeit only temporarily, it might also offer a bullish context to Wednesday’s bearish elements. Sliding throughout the session produced only an inside day. The intraday slide developed during two no-bias signals. Despite sellers gaining traction, sellers probably were not strong hands.

[/pay]What’s Next… (Outlook and opportunities)[pay]
That’s all doubly interesting for being a WedEX session, but only to suggest there won’t be an expiration bias. Gapping up Thursday would be credible for extending sharply higher intraday, but not necessarily into and out of the weekend. Extending down would not be any likelier to recover. In any case, Wednesday’s inside day is meaningful, but not yet predictive. [/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.