Trading Plan for 8/19

If Monday’s high had avoided the rally’s objective… then buyers might have gained traction. That, or closing above the rally’s objective. But testing the rally’s objective set that as a bar for the close. Not closing above it means buyers expended as much buying pressure as possible without gaining traction for the effort.

Pattern points… (Setups and technicals)[pay]
The rally’s highest corrective bounce target of 1968.00 was fulfilled during Monday morning’s bias environment. It was tested during the noon hour, during the afternoon bias environment, and the final minutes. If the range were much more than 3 points, then the pattern might be considered “equilibrium.”

At least equilibrium tries to trend. This alternative can be frustrating. Ranging narrowly around the same relevant level throughout multiple consecutive timing windows can repeat that pattern the next day. Often the two days are separated by a gap open.

Gapping open within the 1954.75-1973.00 range would likely resume ranging narrowly. Ranging narrowly through the bias environment would likely range narrowly through the afternoon’s bias environment. Regardless, breaking beyond 1954.75-1973.00 through a relevant timing window would likely trend in that direction.

[/pay]What’s Next… (Outlook and opportunities)[pay]
Unless the opening 15 minutes of volatility are trending or breaking beyond the 1954.75-1973.00 range, either no signal will trigger, or a reaction back to the other end will be likely.[/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.