Trading Plan for 6/10

If it’s Saturday… then it’s time for the Saturday Strategy Session. It’s link is found in the blog’s sidebar. Join us at 9:30am ET to discuss the market’s bigger picture, initial strategies for Sunday night and Monday morning’s opens, and then for instant analysis of any stock requests you may have.

Pattern points… (Setups and technicals)[pay]
Marginalizing sellers Friday morning would have opened the door to an intraday rally targeting 1644.00 and 1648.00. Sellers were marginalized, essentially, until they weren’t — or, at least, the rally lost its momentum buyers but sellers never gained traction Friday morning. A late surge touched 1644.00.

Not that sellers didn’t gain traction temporarily Thursday afternoon when the bias environment was exited under prior lows. The session already would have turned deeply negative by then had the morning’s bias environment been exited so weekly. A 10-point deeper dip than 1631.75 was still possible, but was avoided.

Buyers already had expended a lot of energy before Thursday’s 1621.00/1624.00 close. Friday expended another 20 points, and neutralized another major objective above. In fact, it was almost an afterthought, suddenly surging during the last half-hour from 1638.25 and then retracing all of it into the futures close, back under the morning’s 1642.25 high. So, all available buying pressure was expended without gaining any traction for the effort.

[/pay]What’s Next… (Outlook and opportunities)[pay]
Unfinished business was left outstanding at the 1631.75 afternoon low’s oversold RSIs. It is likely to attract price down at Monday’s open, potentially to launch a new downleg. Gapping up through 1644.00 and probably also above 1648.00 would suggest otherwise.[/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.