Trading Plan for 7/11

If Thursday had closed any higher… then buyers would have started gaining traction for their efforts. But, like Tuesday and Wednesday, they were rewarded sufficiently intraday. The door is open to sellers, so look out below if buyers don’t attract new sponsorship quickly.

Pattern points… (Setups and technicals)[pay]
Exiting Thursday afternoon’s bias environment above the noon hour’s high could have been bullish. But the final hour’s entry was not above the bias environment’s high. In fact, it was back under the bias environment’s low. That negated the bias environment’s potentially bullish exit.

Buyers gained no traction for their efforts, and neither did sellers.

The burden of proof was on sellers, since they were the aggressors. Closing back under 1953.25 — at least under 1955.75-1956.75 — would have started gaining downside traction. But both were recovered.

Buyers failed to recover out of negative territory, and from recovering 1958.50-1961.75. The cash session close equated to 1958.50 — recovering 1961.75 through Friday’s open still could serve by proxy. Either the recovery is resuming then, or else a dip could quickly become a much bigger sell-off into the weekend.

[/pay]What’s Next… (Outlook and opportunities)[pay]
This being a Friday, the morning’s bias tends to persist through the noon hour. This being a multi-session downtrend, a fresh low on Friday has potential to extend down sharply. Even gapping up or trending higher in the morning would be vulnerable to reversing down unless and until a relevant resistance were recovered.[/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.