Trading Plan for 5/5

If Friday’s pre-open spike up had not happened… then the post-open surge would have gained sponsorship to extend higher through the noon hour. And through prior highs. But the pre-open spike created cover to absorb the later effort. The post-open effort also neutralized the pre-open spike’s resistance. Now it’s up to Monday to try again.

Pattern points… (Setups and technicals)[pay]
Friday’s reaction to the Employment Situation report was spectacular. And it was spectacular brief. The pre-open reaction spiked up and then reversed back down. The post-open action retraced almost all of the spike, and then more than just its reversal down.

The bias environment was exited under the noon hour’s low. And although the final hour’s entry was still within the bias environment’s range, the 3:10-3:20 window did trend down through a Pivotal Uptrending support of session lows.

That qualifies as gaining traction, despite not producing a fresh low. However, being a Friday, unproductive traction is difficult to exploit Monday after the weekend has softened memories.

Not that a downdraft isn’t possible — it’s likely, if Monday’s open isn’t already rallying. And similar to Friday’s scenario of any rally being a big rally, rallying at all Monday should begin by gapping up above Friday afternoon’s highs.

[/pay]What’s Next… (Outlook and opportunities)[pay]
Saturday strategy session [/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.