Trading Plan for 5/30

The potential limit to a corrective bounce… was tested Tuesday morning. It was retested Tuesday afternoon. And its test held. Either the corrective bounce has ended, or it is about to extend higehr.

Pattern points… (Setups and technicals)[pay]
The potential for containing the corrective bounce off of 1290.00 was 1330.00-1332.00. Its resistance was probed by Tuesday morning’s rally up to almost 1334.00. An interim dip to 1322.00 was recovered to pierce 1334.00. The cash session close equated to 1331.50.

So, Tuesday afternoon’s buyers accomplished nothing that had not been accomplished already that morning.

The afternoon bias environment’s exit was still testing the noon hour’s 1325.75 upper-end. The session’s last hour was entered while still testing the afternoon bias environment’s 1326.75 upper-end. A buy signal at 1324.25 was very productive, but only grudgingly.

So, Tuesday afternoon’s  gained no traction for their efforts.

Still, closing above the noon hour’s high does keep open the door to extending the rally. Any higher close Wednesday would put into play 1346.00. Any reversal down would be suspicious until breaking under 1322.00.

[/pay]What’s Next… (Outlook and opportunities)[pay]
“Wednesday Wreversal” is so-named for its vulnerability to robbing initial trending of its momentum, and reversing the market more substantially in the opposite direction. Whether a probe of fresh highs that reverses down sharply, or an opening dip that recovers to resume the rally, watch the timing windows for confirmation.[/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.