Trading Plan for 9/8

If Friday’s new high close were above at least one prior high… then it might be credible for protecting the rally against an immediate durable downdraft. But Friday’s new high close was under two prior intraday highs. That’s not momentum.

Pattern points… (Setups and technicals)[pay]
Friday afternoon’s bias environment was exited above the noon hour’s range, but the final hour was entered lower. And the 3:10-3:20 wild card window didn’t compensate for the final hour’s lower entry. None of which is bearish, but the buyers that took price there weren’t gaining any traction for their efforts.

That didn’t prevent fulfilling the 2006.25 bias-up target, which had been left outstanding as “unfinished business above. The 3:37-3:52 position-squaring window surged until touching it. Not closing above it prevented putting into play any higher attraction. Which also isn’t bearish.

None of it is bearish, but it isn’t as bullish as a new high close might seem. An outstanding bias-up target would have helped to attract price higher later, but Friday’s attraction was neutralized. There’s still a “new Globex trend extreme” outstanding at 2011.00, and the likelihood of probing it up to 2013.50.

But Friday’s new high close was under the two prior sessions’ highs. Again, not bearish, but not necessarily bullish. Its momentum won’t be leveraged by starting the week optimistically, and it won’t help to defend against a pessimistic decline.

[/pay]What’s Next… (Outlook and opportunities)[pay]
This weekend’s Saturday Strategy Session begins at 9:30 ET, linked here or in the blog’s sidebar. In addition to discussing the market’s bigger picture and your stocks chart requests, we’ll look at our new home on Marketfy.[/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.