Trading Plan for 9/30

If Monday”s action was trying to form a bottom… then it should be obvious soon after Tuesday”s open. The question then would be whether the post-open rally was beginning from a gap above Monday”s highs, or under its lows.

Pattern Points… (Setups and technicals)
Having invalidated Thursday”s trend change signal by retracing it entirely Friday, a retest of Thursday”s low became possible without getting any traction for the effort. Sunday night”s drop into Monday”s open took care of that.

But the attempt to exploit that was too impatient. Not that the reaction down was too shallow — it did stop a couple of points short of the preferable objective around 1953.00-1954.00. That may still be tested. I could still hold.

Otherwise, the recovery”s impatience may have worked itself out through Monday”s ranging. Trending up at all tomorrow would likely begin by gapping up — well above Monday”s 1974.00 high, well on the way to Friday”s 1979.25 high.

What”s Next… (Outlook and opportunities)
Tuesday”s econ calendar has plenty of opportunity to keep volatility alive.