Trading Plan for 9/5

Tuesday’s probe under Friday’s… low was recovered into positive territory. But only temporarily, thanks to an afternoon surge back up to Friday afternoon’s highs. All to close essentially flat on the day. Have sellers tried everything to retake control, and when will buyers exploit that?

Pattern points… (Setups and technicals)[pay]
Tuesday afternoon’s 9-point surge had a credible origin. A 1399.00 buy signal crept higher to only touch the no-bias environment’s 1401.00 upper-limit, breaking above it just late enough to avoid being “no-bias trending.”

The surge’s sponsorship had three strong-handed qualities: The patience of its origin, its 9-point productivity, and overbought RSIs at its 1408.00 high. But The 9-point surge did not dip back down to test a single pullback limit, preventing buyers from being refueled.

The rally did not resume. It did retrace down to 1402.75, where the bias environment was exited, which was as deep as possible without invalidating its earlier recovery. That was recovered back to 1406.50, after the cash session close, which was too late to be sponsored by strong hands.

[/pay]What’s Next… (Outlook and opportunities)[pay]
By the way, the dip down to 1402.75 also retraced a healthy 61.8% of Tuesday afternoon’s surge. Between that, and the surge’s three strong-handed qualities, it would not be surprising to reward buyers by extending higher overnight. By the same token, it would also not be surprising to punish buyers for not extending higher overnight.  [/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.