Trading Plan for 3/6

[pay]Pattern notes.
Sellers threw everything and the kitchen sink at Thursday’s market. The decline’s 693’50 target was not recovered, but all unfinished business below was resolved. And the lowest among them – Tuesday’s 681’50 new Globex trend extreme was still in the process of being tested at the close.

That doesn’t mean new business can’t be introduced. For example, gapping up in reaction to Friday’s Employment report would leave outstanding the gap back to Thursday’s close. This or a similar effort wouldn’t preclude a very satisfying rally to begin. But unfinished business below would inhibit it, and also speak to the durability of any such attempt – just as November’s unfinished business didn’t prevent a sizable rally, and its ultimate retracement.

Indicators and Internals.
RSI finally diverged positively into Thursday’s low as the 676’50 target was being met. The setup produced a 10-point bounce into the futures session’s close. This recovered above the morning’s low, but it was too late to be predictive, since the cash session’s close had barely recovered above the afternoon’s prior lows. It might have robbed sellers of near-term traction but buyers didn’t gain any, and 1-minute RSI was overbought at the close.

Friday’s opportunities.
The Employment Situation report is due at 8:30, and its reaction could be substantial, and temporary. I rarely condone holding short, and certainly wouldn’t consider it in an environment that is printing new lows, fulfilling all targets, awaiting a big econ report, in an otherwise fluid news environment. I will update overnight if any setups form. [/pay]