Trading Plan for 8/17

Having fulfilled the objective above… at 1407.00, Thursday morning could have inserted a corrective dip. After all, Wednesday’s Expiration Indicator was bullish enough to all but ensure a recovery up to 1412.00. In fact, there was a dip, and it was recovered…

Pattern points… (Setups and technicals)[pay]
…The dip, however, was much shallower and recovered much earlier than expected. The opening dip had potential to at least 1399.50 but recovered from 1401.75. The recovery was higher than it needed to be — up to 1415.50 — but the cash session close pulled back to 1412.00.

In any case, 1407.00 was recovered through the close to put into play 1428.00. A second consecutive higher close Friday would confirm. Not confirming would not necessarily signal momentum reversing down.

Meanwhile, an overnight probe above Thursday’s 1415.50 high might stretch the rubber band a little too tightly, and launch a drop back down to Wednesday’s “lower prior highs” at 1404.50. Dipping first could bottom from 1406.00.

[/pay]What’s Next… (Outlook and opportunities)[pay]
If the bullish Wednesday Expiration Indicator intends to influence Friday afternoon, then an opening dip throughout the morning could test 1404.50-1406.00. Extending higher immediately could extend higher relentlessly through the noon hour, and then only firm into the weekend.[/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.