Trading Plan for 5/12

If Friday morning’s dip were done Thursday… then Friday’s session could have been probing new highs into the weekend.

Pattern points… (Setups and technicals)[pay]
Friday morning’s dip essentially did what Thursday morning’s buyers should have allowed. Consolidating within Wednesday afternoon’s 1864.00-1870.00 range helped to compensate for Wednesday’s late breakout being a little too late.

At least, that’s the bullish premise.

The bearish premise is that Thursday morning’s rally to 1885.00 made it too late for consolidating  Wednesday’s late breakout. Now that only represents weakness, hesitation before extending down much further.

We’ll see. And probably soon.

The past three weeks have formed an Ascending Triangle. So has NDX, which some confuse for being Head & Shoulders’ right shoulder. Each of the pattern’s dips has been accumulative. The Dow made a new record close, albeit not a new intraday high (again). A sudden downdraft probably wouldn’t get very far before recovering.

[/pay]What’s Next… (Outlook and opportunities)[pay]
Saturday’s Strategy Session starts at 9:30am ET, linked from the blog’s sidebar. See you there![/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.