Trading Plan for 10/1

If you have any suggestions for this post-close post… then please let me know today or tomorrow. I”m changing the format a little to simplify digesting the setups that I describe every day — which are relevant, at what prices, what are their triggers and targets, etc — and reducing the narrative a little. I want to try incorporating any suggestions you may have, too… Thank you!

Pattern Points… (Setups and technicals)
For all of its wide-ranging and multiple swings, Tuesday”s session accomplished nothing. At least, neither sellers nor buyers accomplished anything. Each did lay groundwork for a later break, but with different consequences.

Buyers probed Monday”s highs and Friday”s close. Both held their tests. Whether that is bullish or bearish depends on its resolution. Reacting down under a prior low would be bearish. But Tuesday”s reaction held a test of prior lows. The bias environment”s exit and the final hour”s entry both were testing the noon hour”s low. This suggests that Tuesday”s buyers chipped away at resistance.

Tuesday”s sellers went out testing support, probably on the way to fresh lows. But not with any grander designs than to fill the gap back to Monday”s 1957.00 gap open, or to 1954.75 or 2 points lower.

Probing fresh lows overnight and greeting Wednesday”s open in recovery mode could be very bullish into the weekend. But still defending the lows past Wednesday”s open would start to suggest a deeper drop has begun.

What”s Next… (Outlook and opportunities)
A quarter just ended and Friday”s jobs report is nearing. Like the grinding gears metaphor I use in the Chartroom to describe the cusp between timing windows, volatility increases when multiple sponsorships try influencing the same limited pool. OVersold RSIs at Tuesday”s low require a retest, and an overnight probe of fresh lows remains likely. But trending down won”t be credible unless maintained through the open.