Trading Plan for 12/10

If not for the dueling fiscal cliff pressers… then perhaps all of the unfinished business above would have been neutralized Friday. Regardless of its size, was the momentary pre-open spike up sufficient to reward this week’s buyers for having absorbed so much selling pressure?

Pattern points… (Setups and technicals)[pay]
Friday’s reaction to the Employment Situation report neutralized two bits of unfinished business above at 1416.75 and 1421.50. The week-old 1424.00 “new Globex trend extreme” remains outstanding, likely to be tested up to 1425.50.

Spiking up 13 points probably worked against itself in covering too much ground too quickly. Gapping up to resistance is difficult to extend. Being a Friday was also an impediment — as with Mondays, it can be difficult to extend extreme pre-open sentiment. Dueling fiscal cliff press conferences meanwhile inhibited sponsorship.

Nevertheless, closing above the noon hour’s high means that buyers gained traction for their efforts, despite closing well off the morning highs. That should translate into probing fresh highs much sooner, rather than later. Fresh highs can translate into an extended rally, or a durable top.

[/pay]What’s Next… (Outlook and opportunities)[pay]
Join us for this weekend’s Saturday Strategy Session at 9:30am ET. We’ll discuss the bigger picture in greater detail, along with opening setups for Monday. Your stock requests will also be addressed. [/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.