Trading Plan for 6/28

The premise going into… Tuesday morning’s sell-off was that its low would launch a multi-session rally. Wherever its low, the recovery should have been obvious Tuesday, no later than Wednesday. Its ultimate objective would be to probe last week’s high. So far, so good…

Pattern points… (Setups and technicals)[pay]
Tuesday morning’s reaction up from meeting its 1303.25 target started making the rally obvious. Wednesday morning’s surge through 1318.00 to 1326.00 did, too.

Two concerns, in reverse chronological order, are Wednesday’s late high and Tuesday’s low.

– Wednesday’s late high above 1328.00 fulfilled the minimum objective of the last hour’s 1324.00 buy signal. And then cratered. Not back under a relevant low — in fact, the last leg was retraced no deeper than 61.8%. But it closed back at or under the morning’s 1326.00 high, despite having probed above it twice intraday.

– Tuesday’s low was above Monday’s low, so this continues to be a tentative rally. Except for overnight, and only overnight, a pullback under 1323.00 could undo any traction gained since Tuesday’s low.

[/pay]What’s Next… (Outlook and opportunities)[pay]
Despite being only a temporary rally, albeit targeting a probe above last week’s 1357.00 high, it should extend higher through Thursday morning (if not already higher Wednesday night) before the next significant pullback potential Thursday afternoon and/or Friday morning.[/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.