Trading Plan for 10/9

[pay]Pattern notes.
The premise after Wednesday’s session was that the corrective bounce’s momentum had peaked. A higher intraday high was still possible, albeit vulnerable to closing negative on the day to prove momentum had peaked. This was still the premise at Thursday’s opening gap up, that the close would reject the overnight gains, whether or not first extending higher intraday.

That, or else the bounce was extending back up to prior highs for a retest, if not for a new rally leg to be underway.

Of course, Thursday’s close followed neither path. This isn’t inappropriate for the bearish scenario, since the session was “ineffectual optimism.” The regular trading hours 1061.00 open was also printing printed at the cash session close. Buyers expended a lot of energy gapping up and treading water, without gaining traction in the process. So, the bearish scenario lives to fight another day.

A close under 1061.00 would have been likely to trend down overnight, and gap open under prior highs. Gapping down after holding above 1061.00 is still possible, but less likely. Regardless, the next lower target is the 1051.00-1052.25 area.

A close above 1065.50 would have been likely to rally overnight. There is no unfinished business above or higher target in-play, but a buy signal would get a benefit of the doubt for extending higher. Another gap up is possible, but any follow-through would gain be unlikely to gain new traction, and vulnerable to reversing down.

Indicators and Internals.
3-minute RSIs resisted extending into overbought or oversold territory, and quickly resolved requirement.

Friday’s opportunities.
The day’s econ calendar is so low-profile that is essentially a news-free day. Quarterly earnings haven’t really gotten underway. This being a Friday, the morning’s bias signal is likely to persist well past the noon hour.  [/pay]