Trading Plan for 9/26

Methinks thou doth not protest too much… The difference between Friday’s open and close was 14 points, and basically trended up. That’s a lot of optimism for a session that never broke beyond Thursday’s range; “ineffectual optimism.” [pay]

Pattern points… (Setups and technicals)
Actually, Thursday’s low was probed briefly before Friday’s open, and not by a little. The dip to 1102.00 is a “new Globex trend extreme” that requires being retested intraday. Add that to the outstanding 1077.00 crash low.

Otherwise, Friday was one big delay. It didn’t solidify the bottom, nor did it chip away at resistance above. At least one opportunity to break lower was denied, when recovering from new lows on a Friday could have trapped shorts to fuel a recovery.

The overnight low formed a “V” bottom, and it formed upon retesting Thursday’s “V” bottom. Two “V” bottoms do not make a durable bottom. Further delay would likely rally in relief to either 1143.00 or 1153.00. Otherwise, a break under 1117.00-1119.00 would target 1103.00-1107.00, and probably resume the decline.

What’s Next… (Outlook and opportunities)
Don’t forget to join us for Strategy Session at 9:30am ET Saturday. Its link is in the blog’s sidebar. [/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.