Trading Plan for 10/6

Sellers never gained traction Wednesday… It’s not that the rally’s sponsorship is strong buyers. It’s that sellers are weaker, or patient. This relationship can end at any time, but it need not end immediately.

Pattern points… (Setups and technicals)[pay]
Opening weakness dipped only 61.8% back into the overnight range before extending higher to retest the overnight high. The morning’s higher highs during the no-bias environment were eventually retraced, but only as noon hour noise. And the afternoon’s higher highs closed above all prior timing windows.

And yet, Wednesday’s market was dragged higher grudgingly. The overnight high printed after sunrise. Both bias environments were no-bias. And any overbought RSI was reversed down almost immediately.

The rally can extend higher — recovering 1143.50 through a relevant timing window would target 1161.00, and potentially also 1172.00. Regardless, Tuesday’s low was too shallow, too brief, and reversed up too quickly to fulfill the retest of August’s low.

[/pay]What’s Next… (Outlook and opportunities)[pay]
One more look at the jobs picture Thursday may fine-tune the tone for Friday’s Employment Situation report, with end-o’quarter earnings following closely. [/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.