Trading Plan for 9/29

If you”re available at 9:30am ET Saturday… then join us for the Saturday Strategy Session. We”ll start with another tour of the Marketfy resources, review the market”s bigger picture, and then do instant analysis of your stock chart requests. See you there…

Pattern Points… (Setups and technicals)
Is it Yom Kippur already? Friday”s rally wasn”t at all immediate. But it was sudden, and it was substantial. And it retraced the relevant portion of Thursday”s Rosh Hashanah sell-off.

That relevant portion was the break under last Monday”s lows that signaled a trend change. It seemed dubious at the time, but it”s retracement isn”t much more credible. However, it was enough to avoid validating the trend change.

The pattern that launched Friday”s rally wasn”t accumulative, so it”s ~1958.00 low is likely to be retested. The rally developed exclusively during the otherwise low participation environment of Friday afternoon, so its sponsorship wasn”t strong-handed. And persistently overbought 3-minute RSI accompanied the rally, which requires a correction. Any one of these reasons alone, let aloe all combined, make a retracement to some degree likely.

What”s Next… (Outlook and opportunities)
Meanwhile, overbought RSIs at Friday”s 1979.25 high require a retest, presumably up to 1980.50 or 1982.00. Testing it Sunday night might not be attractive to short since one resolution is to quickly retest recent highs. But reversing from its test back into negative territory would be compelling.

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