Trading Plan for 6/10

If not for Monday morning’s rally… then Monday afternoon’s decline would have seriously damaged the topping process.

Pattern points… (Setups and technicals)[pay]
Friday’s new trend extreme close created the requirement for at least one more. Friday afternoon’s buyers didn’t gain traction, so trying to produce the new high close Monday morning was doomed to failure. And after retracing Monday morning’s new highs — without yet deeply probing negative territory —  rallying into the close was doomed to failure, too.

I should say, IS doomed to failure. Monday’s bounce out of the afternoon bias environment’s low has yet to fail. It did hold its 1951.00 objective, which was a 61.8% retracement of the afternoon’s decline. Coincidentally, that was also Friday’s close.

A durable downleg is unlikely while a new high close is still required. But that doesn’t prevent a multi-session pullback. And a multi-session pullback isn’t likely to be shallow.

[/pay]What’s Next… (Outlook and opportunities)[pay]
The market has gotten very heavy on top, making a new high close much more difficult. Last Monday morning’s reversal attempt to reverse down failed and recovered substantially, making the next reversal attempt likelier to succeed.[/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.