Trading Plan for 11/6

If pullbacks keep chipping away at support … then potential for retesting the highs might be delayed for a deeper and drawn-out decline.

Pattern points… (Setups and technicals)[pay]
I had noted after Monday’s close that “Back under 1756.00-1757.00 again would have only one chance to recover from 1752.75, or else extend down sharply.” Tuesday’s drop tested 1752.75 by at least 2 points. And it recovered to test 1762.00.

And then the recovery peaked.

Not that the peaked recovery was soon replaced by a new downleg. But post-close action is trying. The last hour’s slide from 1762.00 is now testing 1756.00-1757.00 as support. Back under it again would have… I mean, had… one chance at recovery.

Nevertheless, I’m still reluctant to give sellers a benefit of the doubt. Tuesday’s break lower originated after all relevant sponsorship was finished for the day. And that was two timing windows after relevant sponsorship last acted. But if Wednesday’s open isn’t already rejecting and recovering from Tuesday’s late slide, then it is probably already trending down much further.

[/pay]What’s Next… (Outlook and opportunities)[pay]
Don’t forget I’m away from the market for most of Wednesday. I’m reasonably sure that I’ll be back for the last hour and Market Wrap. But there is no Market Tour or interim posts. [/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.