Trading Plan for 10/8

If Wednesday wants to ignore Tuesday”s sellers gaining traction… then it need gap up only 20 points. Easy.

Pattern points… (Setups and technicals)
About those oversold RSIs at last Thursday”s 1918.25, they”re the next lower objective. Tuesday”s next lower objective was 1927.00, which was tested and still being tested at the close. Unless Wednesday”s open were recovering the last lower objective at 1934.50, then the trend remains down.

Next in line is oversold RSIs at the two-month old 1890.25 “new Globex trend extreme.” That assumes Wednesday”s close is under 1927.00.

Lower lows are likely intraday. The bias environment exit was under the noon hour”s low and the 3:10-3:20 window trended down to fresh lows. Sellers gained traction for their efforts.Alternatively, gapping up above higher prior lows at 1942.00 or above the afternoon”s 1948.00 high would reverse the trend up.

What”s Next… (Outlook and opportunities)
FOMC Minutes will be released Wednesday afternoon. It”s one thing to range at the highs as if a tightened spigot can be compensated for. It”s another thing entirely to discover a shut-off notice in the afternoon mail.