Trading Plan for 5/27

If this is a holiday weekend… then there is no Saturday Strategy Session. We did discuss bigger picture items during Friday’s post-close Market Wrap, whose recording is linked from the blog’s sidebar.

Pattern points… (Setups and technicals)[pay]
New high closes on Fridays tend not to be a trend’s extreme. There is rare exception to that historically, and no exception when that trend extreme appears ahead of a holiday weekend. At least one more higher close is likely.

That doesn’t prevent an interim dip. In fact, closing under the prior intraday high does undermine upside momentum. It wasn’t for a lack of opportunity, since the prior high was probed intraday.

So, Friday’s new high close wasn’t so much a breakout as it was just noise in the range. And the bigger picture is disturbing since the failed Ascending Triangle’s high is being retested without sufficient refueling. Higher highs are a high probability, and so is there rejection.

[/pay]What’s Next… (Outlook and opportunities)[pay]
Chartroom will be open Sunday night for Globex, which trades into Monday. I’ll comment if anything merits it. Meanwhile, have a safe and happy Memorial Day weekend! [/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.