Will Friday's late rally have follow through?

Through the prior close… A choppy session ended the week; almost entirely range bound until yet another late break higher. Buyers gained no traction for their efforts before the last half-hour’s run to almost 1954.00 retesting Wednesday’s late high (and preventing the dreaded double doji). The closing rally began with an hour remaining, which was also too late for strong handed sponsorship — especially on a Friday.

Overnight action’s new info… A relatively narrow sideways range holding 1951.00 support persisted until a 6:00 am wake-up call that started sliding to 1948.00. RSIs became oversold as Friday’s earlier highs were probed. An oversold bounce is now attacking 1951.00 as resistance.

If, then… Once again, buyers gained no traction, but that didn’t stop a late rally effort. And once again, that late weak-handed rally effort is being retraced before the open. The late rally did create more room to absorb early sellers, who will need to retrace deeper than just Friday’s late break in order to reverse the trend down.

First Trade… Exiting the open at 9:45 under 1948.00 would be likely at least test the 1946.25 bias-down signal at 10:15. But bias-down won’t be any likelier to trigger without also breaking under 1943.50. Exiting the open above 1951.00 should at least test the 1953.50 bias-up signal.

Ed Note: Each trading day, traders can listen to live, streaming squawk box commentary on FUTURESmag.com coming directly from the S&P trading pits in Chicago.

About the Author
Rod David

Rod David develops analytical techniques that are designed to efficiently identify targets and turning points for any liquid stock or market in any time frame. He primarily analyzes S&Ps, generating several round-turn candidates daily. Rod publishes "Trading Plan" and more each session at the blog http://IfThenSignals.com.

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