Trading Plan for 3/7

If Friday’s NFP were feared… then stocks would have dipped into the prior afternoon, Thursday. Instead, ranging around the open’s gap up failed to extend both higher and lower — not for lack of trying, but perhaps for lack of trying very hard. In either case, the report is preceded by more optimism than pessimism, which is potentially bearish from a contrarian perspective.

Pattern points… (Setups and technicals)[pay]
Thursday left no unfinished business above. The morning’s bias-up target was tested and held without triggering any new objectives above.

There is unfinished business below. Thursday afternoon’s dip to 1873.75 took RSIs oversold. Its low requires a retest. Neutralizing its test early without extending below it through a relevant timing window could marginalize sellers for the day. Maintaining a break under it could attract sellers all day long.

There is no upward momentum. Despite again probing new highs, Thursday’s entire range was contained within its opening surge. Its lower-end was supported by the prior two sessions’ upper-end. And those prior two sessions were glued to 1870.00. None of which precludes extending higher Friday, but only if at an accelerated pace.

[/pay]What’s Next… (Outlook and opportunities)[pay]
There is no preliminary level before the Employment Situation report, but levels will be updated before the open.[/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.