Trading Plan for 5/29
[pay]Pattern notes.
Back above ESm 1384’50 and 1386’00 was increasingly likely to trend up into the close. A surge lifted off just as the 3:20-3:30 window was opening, eventually reaching the 1393’25 pre-open high. Wednesday’s session was not accumulative, and neither was Tuesday’s, but that hasn’t stopped price from eking higher. The market is finding a way to refuel sellers and take care of unfinished business (like the gap back to last Thursday’s 1393’50 close) while also absorbing buyers without letting them get any traction.
Indicators and Internals.
Despite the session’s net gain, Wednesday’s internal spreads were negative as 50% more NYSE up volume than down volume produced only 30% more advancing issues than decliners. Total volume improved, so Thursday’s session is obligated at some point to reward Wednesday’s sellers for their relative productivity. Wednesday’s last 2 points were added after the cash session close while RSI & MACD made no higher highs.
Thursday’s opening setup.
A pullback has room down to ESm 1388’00 before either extending lower or else extending the corrective bounce up to either 1396’25 or to 1401’50. A third consecutive closing gain is unlikely unless the following day reacts down strongly. Several econ reports are due throughout the morning, and if none is able to trigger the decline’s resumption, then it might not occur until at or just after Friday’s open.[/pay]