Trading Plan for 6/4

If this were expiration week… then this setup would be capable of  triggering either a bullish or bearish WedEX. I would be more concerned with today having potential for a Wreversal Wednesday, especially after Tuesday’s inside day.

Pattern points… (Setups and technicals)[pay]
Tuesday morning’s absorption of the overnight dive had put into play a test of 1923.75. It was met to within 1 tick after the close. Monday’s cash session close equated to 1923.00, relatively unchanged. That’s another version of Monday’s buyers not gaining traction, which I described in yesterday’s Trading Plan.

Despite the new high close, buyers gained no traction for their efforts. The bias environment exit was bullish, above the noon hour’s high, but the final hour entry fell back within the noon hour’s range. And the 3:10-3:20 timing window didn’t compensate.

Neither side is passive; each side is arguing its point. It’s like divorcing parents fighting over who gets custody of the kid (“You take him,” “No, you take him”). Something — anticipation for something — is holding the market aloft. But there is no “unfinished business above,” the BOE and ECB policy decisions are coming Thursday, and then Friday’s Employment Situation Report.

[/pay]What’s Next… (Outlook and opportunities)[pay]
REMINDERs: I am not in front of screens this morning and through the noon hour. Not regularly. So, there is no Morning Market Tour. But I will try to add comments whenever possible, and I hope that subscribers will help each other out. Thank you!.[/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.