Trading Plan for 6/8

[pay]About that close (How the prior session ended)
Tuesday, May 25 was the market’s low. Its 1046.00 opening gap has required a retest. Monday’s late slide to new lows stopped just 1 point short of neutralizing it. Just 1 point. That’s pretty optimistic after falling 22 points from the noon hour.

Pattern points (And technical influences)
Even after bouncing into the close, an early evening attack on the low stopped 2 ticks short. Optimism at the end of a very pessimistic slide suggests the optimism is far from over. May 25’s 1036.75 pre-open low is a “new Globex trend extreme” with oversold RSIs that also requires a retest.

Add these to the 2-3 other pieces of unfinished business below that were neutralized recently. As discussed here for the past week, visiting new relative highs first means the retests probably aren’t retests, but a new downleg. That’s not quite the mainstream opinion, yet S&Ps have already dropped 60 points in two days.

Bottom line (My underlying premise)
At this stage it’s possible to reverse near-term momentum upward by gapping up sufficiently. But this would leave outstanding a gap back to Monday’s close, and more unfinished business below.[/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.