Trading Plan for 9/6

Strategy Session is off for the holiday… Post any stock or market analysis requests to the comments section of this blog post. And enjoy the holiday![pay]

Pattern points… (Setups and technicals)
Friday’s close under 1193.00 has signaled the trend is reversing down. There is no unfinished business above — the 1126.00-1128.00 target was tested thoroughly, and the gap back to Thursday’s 1201.25 close does not require being filled.

A second consecutive close under 1193.00 would confirm the downleg underway. Closing immediately back above 1193.00 would invalidate Friday’s break, and probably lead to fresh highs targeting 1143.50.

The next cash session happens to follow a holiday, but Globex trades through Monday morning. A bounce to 1193.00 or 1201.25 could greet Tuesday’s open with a big gap up. It had better gain traction fast, or else risk trending back down to Friday’s 1175.00 and 1170.00 lows.

Or lower.

The next lower objective under 1193.00 is 1165.50. Its test is likely to be part of any probe under Friday’s lows, whether following a bounce or without bouncing at all. In fact, since 1165.50 was in-play Friday but left outstanding, any other day of the week would have been compelling to hold-short through the close.

What’s Next… (Outlook and opportunities)
I’ll be checking in Sunday night and Monday morning. Bias Parameters are available for Globex, and new parameters will be published for Tuesday after Monday morning’s close… Friday’s recording of the Market Wrap is here.[/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.