Trading Plan for 11/6

If Monday afternoon’s rally had developed at the open… then Friday afternoon’s slide might have been rejected before Monday’s close. It may still be, but there remains a vulnerability to probing lows.

Pattern points… (Setups and technicals)[pay]
Friday afternoon’s slide to 1405.00 expended a lot of selling pressure without gaining any traction. It left the next week precariously positioned, but not necessarily bearish. Initially rejecting that slide Monday morning would have been credible for extending higher.

It didn’t. Instead, Monday morning remained under pressure in mostly negative territory. And it created a lower target at 1402.50. That target’s influence Monday ultimately prevented a durable rally. Even Monday afternoon’s 10-1/2 point rally to 1415.50 was retraced to close back at the morning’s 1411.00 high.

Monday afternoon’s 10-1/2 point rally was probably a delayed version of what Monday’s open could have done to reject Friday afternoon’s slide. Better late than never? Returning back to the morning’s high suggests not. A morning effort would have had time to attract sponsorship.

At least Monday afternoon’s rally got something for its effort — overbought RSIs at 1415.50 that require a retest. That unfinished business above, and 1402.50 below aren’t tied to any timing. But exceeding either through a relevant timing window would be likely to extend in that direction.

[/pay]What’s Next… (Outlook and opportunities)[pay]
Election predictions are not going to influence price action Tuesday. Media coverage can only create opportunities to fade. But trending would be interesting if there is any connection to word that one candidate or the other is doing better.[/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.