Signals & Trading Plan for Friday 9/20/19

Market context
The repo story may have been downgraded a bit, but it is not going away.  According to Bloomberg:

This week’s actions have helped calm the funding market, with repo rates declining to more normal levels after soaring to 10% Tuesday, four times last week’s levels. However, swap spreads tumbled to record lows Thursday amid concern that Fed policy makers… didn’t announce more aggressive steps to keep rates from spiking. Swaps are signaling less appetite for Treasuries, driven by concern traders won’t be able to fund purchases of U.S. debt through the repo market.

Keep an eye on this story as it may have the potential to alter the Fed’s current course of actions.  It may also have the potential to derail the current Up Trend.   However, it’s too soon to guess at the outcome. 

We must trade the signals in front of us, right now, as presented by market internals.

Unfortunately for us bulls, market internals are saying that Minor Dip2 is still not fully done yet.  

The rest of this article covers:
Table of support and resistance levels
Updates from market internals
Planning your trades

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