Trading Plan for 5/9

If Pivot Reversals reverse up immediately… then they had better keep the reversal going. Or else.

Pattern points… (Setups and technicals)[pay]
The Pivot Reversal setup can be huge. Its follow-through can be immediate, and it can be impressive. And it can be quite the opposite sometimes when not followed-through immediately.

Wednesday’s Pivot Reversal at 1876.00 actually needed not to follow-through immediately in order to follow-through impressively. A dip back under 1871.50 would have helped to form a more durable base. Overnight did refrain from extending and eventually dipped to 1868.00 before the open.

But the pivot’s reversal was back underway soon after Thursday’s open. The follow-through was impressive, extending up to 1884.75. But it was launched from an unstable base. And the morning’s rally was retraced entirely, more so, down to 1865.00.

That would have been helpful about six hours earlier, when it could have been absorbed in time for the balance of the session to rally. Now, Friday must recover Thursday’s high to signal the Pivot Reversal is back in-play, not to mention new highs.

[/pay]What’s Next… (Outlook and opportunities)[pay]
The weekend is fast-approaching. Being a Friday, the morning’s bias is likely to persist through the noon hour.[/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.