Trading Plan for 5/29

Please have a safe and happy Memorial Day weekend… I will be monitoring Sunday night’s action through Monday morning in the Chartroom, and will comment as necessary.

Pattern points… (Setups and technicals)[pay]
Pre-holiday illiquidity strangled Friday morning’s volatility, as many U.S. traders stretched a three-day weekend into four. The relatively narrow range was nonetheless very choppy. For all that it was, it was not accumulation.

A test of the morning’s 1313.00 bias-down signal  was put into play by holding a test of the 1320.75 bias-up signal. It was left intact by not exiting the morning’s bias environment back above 1320.75. It was fulfilled by exiting the afternoon’s bias environment under the noon hour’s 1317.25 low.

In fact, the session’s last hour was entered under the afternoon’s 1315.25 bias environment low. And then the 3:10-3:20 timing window trended down to fresh session lows. The reaction up from testing 1313.00 down to 1312.00 was recovered up to 1316.50. That was still not accumulation, and sellers gained traction for their timing, but did not close under a prior low.

It is possible to dismiss Friday’s price action for being little more than noise ahead of the holiday weekend. Thursday night’s rally to almost 1330.00 was much more relevant. It would suffice as the peak of the correction from 1290.00. The alternative to avoiding a retest of 1330.00-1332.00 would be to resume the decline without delay, likely by gapping down sharply. So, absent a gap down, a retest of 1330.00-1332.00 would be likely.

[/pay]What’s Next… (Outlook and opportunities)[pay]
Don’t forget — There is no Saturday Strategy Session on holiday weekends. Please don’t hesitate to make any chart analysis requests in the chartroom Sunday night or Monday.[/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.