Trading Plan for 5/23

If sellers wanted to reject Thursday’s buyers… then they could have done better than limiting the late high to a single errant tick. Relevant support was hardly any lower through the afternoon, but the market only consolidated.

Pattern points… (Setups and technicals)[pay]
Buyers gained traction Thursday. Barely, but they did. The bias environment was exited just above the noon hour’s high. And thanks to an errant tick, the final hour was entered above the bias environment high. Neither was optimal, but neither was rejected on a timely basis.

The 3:10-3:20 timing window could have invalidated the traction. Price had already dipped. But the window didn’t trend down, certainly not under any relevant level.

Thursday did close back under the noon hour’s low. That undermines the upside momentum. It has nothing to do with upside attractions that remain outstanding — last Tuesday’s high, the high. Between those mixed signals, and the impending holiday weekend sucking volume out of the room, there is little predictability at this moment for Friday.

[/pay]What’s Next… (Outlook and opportunities)[pay]
Buyers gained traction, so trending down immediately requires gapping down. I don’t suggest stepping in to buy a dip without some indication it’s done. By the same token, fresh highs can extend toward, to and through unfinished business above.[/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.