Trading Plan for 6/29

Did Thursday morning’s ruling… on the Patient Protective Care and Affordable Cost Act (PPCACA — I might have that wrong) interfere with the pullback’s timing? If so, then Friday could be very bullish.

Pattern points… (Setups and technicals)[pay]
1323.00 needed to hold as support through Thursday’s open to maintain the rally’s near-term potential. That was the caveat at Wednesday’s close. By Thursday’s open 1316.00 was struggling to hold as support. It did not.

After dropping intraday to 1306.75, a 16-point surge tested 1323.00 — which held as resistance through the close. And that was still negative territory. A lot of buying pressure was expended just to test Wednesday afternoon’s “higher prior lows.”

That doesn’t preclude a bigger bounce, since sellers don’t gain traction after closing above the morning’s highs. And the expected Thursday afternoon / Friday morning corrective dip may have been accelerated into Thursday morning, due to the morning’s news. Also, the 1306.75 low essentially satisfied the 1306.50 target.

Nevertheless, there is potential for a corrective dip to test 1316.00. It isn’t required, but can be done Thursday night to already recover at Friday’s open. Regardless, Friday’s open can already be attacking or probing Wednesday’s 1328.00 highs.

[/pay]What’s Next… (Outlook and opportunities)[pay]
Failing to contain an overnight pullback, or simply opening weaker Friday, could resume Thursday morning’s decline. This close to the weekend would be a very dangerous time to still be probing support.[/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.