Trading Plan for 2/27

Don’t forget about Saturday… and about the Saturday Strategy Session. Its link is in the sidebar. We’ll discuss the market’s bigger picture, and also take requests for instant analysis of any stocks.

Pattern points… (Setups and technicals)[pay]
Did Thursday night’s test of 1368.50 fulfill the required retest of last Sunday’s “new Globex trend extreme”? No. But it will seem that way Monday if the open isn’t already rallying.

1368.40 was the SP contract’s high following last weekend’s Greek debt deal. It was retested overnight. Its reaction down closed Friday under Tuesday’s 1365.00-1365.75 prior highs. So, buyers gained no traction for their effort.

The cash session close equated to 1364.00, narrowly avoiding a close under 1362.00-1363.00 which would have gained traction.

A narrow 6-point range on a Friday would not be very predictive, even if it did trigger a signal. Its historically low volume pace would undermine a signal, anyway. But a lot of selling pressure was expended since last Sunday night, and the opportunity to exceed it was not exploited. Missing another opportunity to extend higher here can be very bearish.

[/pay]What’s Next… (Outlook and opportunities)[pay]
Euro and Crude Oil action attacking or testing their own targets/resistance have gotten extended, too. They’re rallies also depend upon extending higher without delay to avoid sharp reversals. [/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.