Trading Plan for 11/3

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Pattern points… (Setups and technicals)
From a contrarian perspective, pessimism is potentially bullish. That is, if the pessimism doesn”t gain traction. Wednesday afternoon”s post FOMC dips and that night”s lower low spent a lot of time probing support, repeatedly, and not always by a little. But never by enough at the right time, not when selling could have gained traction.

Fast-forward to Friday”s opening drop. Its sizable opening drop. It probed relevant support, several times. And at the bias timing window, sellers finished forming what would become the session low. One big difference (there are several smaller ones) is that Thursday”s session rallied sharply. Friday”s rally was fully developed overnight.

There is a fine line between pessimism and apathy. Friday”s opening drop was the former, but not recovering intraday was more the latter. Pessimism interfered with testing either of the outstanding overnight highs, then apathy prevented a bullish consequence before the close.

What”s Next… (Outlook and opportunities)
That doesn”t undermine the potential for extending higher Monday, if not already compensating for the delay by surging Sunday night. But it makes extending higher Monday or later less durable. New trend high closes on Fridays tend not to be a trend”s highest close — a safety feature if the rally were corrected Monday, but no longer relevant if Monday were to close higher.