Coming up in tonight’s Trading Plan…

[pay]The Beige Book’s reaction down to 836’25 and its reaction up to 841’50 each have had more than enough time being probed by several points to see that this market isn’t yet interested in sustaining a trend away from the mid-day range.

And since the drop’s “pivotal low” (the low prior to the actual low) was touched, an eventual break under the 832’50 actual low is all but required. Any dip under 836’25 is likely to then extend down into the close, targeting 827’00, so long as bounces hold any test of 838’00.

Not extending back under 836’25 by 3:35 or so would be similar to recovering the bounce limit – not necessarily a buy signal, but also signaling that sellers have lost their near-term traction. And similar to yesterday’s close toying with its bounce limit, the following session’s open can compensate for the delay by gapping sharply.

At the very least, it is relevant that this session did remain under pressure at major landmarks. The afternoon did not trend down, but buyers didn’t gain any traction. And that helps to keep the decline’s momentum intact for at least a brief lower low tomorrow.

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