Trading Plan for 10/6

If Friday”s close were bouncing instead of dipping… then a hold-long would have triggered through the weekend. Dipping from fresh highs back to support would have qualified, too. But the last hour”s narrow range ended in decline, which isn”t really relevant price action, and doesn”t undermine any other signals.

Pattern Points… (Setups and technicals)
A hold-long was compelling because buyers gained no traction Friday afternoon. The bias environment exit and the noon hour”s entry each were overlapping the noon hour”s high. So, extending higher immediately should require gapping up.

And there are attractions above that make Monday likely to extend higher.

Having traded up to 1963.00 during the noon hour, Friday afternoon”s 1959.00 bias-up signal triggered cleanly. But RSIs diverging negatively at 1963.00 was signaling near-term weakness. The 1959.00 bias-down signal held its retest, launching a move to fresh session highs at 1964.50. But the 1967.00 bias-up target was left outstanding.

That”s one attraction above.

Meanwhile, there is the likelihood for probing higher highs the day following a validated session-long rally. Friday”s gap up above the prior afternoon”s high completed the setup. Every timing window but one probed the prior timing window”s high. Despite the noon hour”s high holding several later tests, it was tested, and each test probed fresh highs. The setup was validated, so higher highs are likely to be probed Monday morning.

What”s Next… (Outlook and opportunities)

This weekend”s Saturday Strategy Session begins at 9:30am ET. I”ll post/send its link separately before the event, if not overnight — it will be different from prior sessions.