Trading Plan for 4/27

About that close (How the prior session ended)
It was already apparent by the First Trade blog post that Friday’s breakout wasn’t gaining traction. But it still needed to try, and Friday’s equilibrium close still needed time to be absorbed. Along the way an objective was created at 1208.00, which Monday’s last hour tested down to 1207.50.

Oversold RSIs at the low warned of the sudden potential for a bounce. They also doomed the bounce to failure. In fact, a 3-1/4 point bounce was retraced entirely when futures closed at 1207.50.

Pattern points (And technical influences)
Monday’s 3:10-3:20 window dropped to new session lows, which confirms that  momentum reversed down. And since downlegs come in multiples of two or three, Monday’s single downleg fulfilling 1208.00 suggests at least one more downleg will develop.

Lower targets would include unfinished business below from last week’s rally at 1198.50 and 1186.25. Likely to be met as they may be, they’re not considered to be in-play until triggering Tuesday’s bias-down.

Recovering 1213.50 would rob sellers of their traction. That said, not recovering 1213.50 within minutes of Tuesday’s open is unlikely to recover it intraday, at all. Regardless, recovering 1213.50 through any relevant timing window would at least point higher near-term.

Bottom line (My underlying premise)
Tuesday’s hearing for GS in front of the Senate Permanent Subcommittee On Investigations is televised. It wouldn’t be surprising for price action to appear as if the session had been halted. Some news events are still scheduled before then.

Don’t get too caught up in the soap opera on TV, when your chart screens promise there to be some excitement soon:

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.