Posts by Rod David
Sunday night’s chaRTroom link.
As we discussed during yesterday’s Saturday Review, yet another pullback may have been absorbed. It’s not definitive, and the path back up hasn’t changed. But the path down has reached a do-or-die point that can resolve aggressively without any further delay. We’ll start getting the global opinion of this premise momentarily, when overnight Globex trading opens at 6:00pm ET.
Saturday Review’s recording (for 5/21/16) … Put up, or shut-up.
There’s only so much to be said, every Saturday, about fluctuation around 2050.00, every week. But repeatedly testing 2039.50 without closing under it, recovering from interim tests of lower support, eventually runs out of sellers. A path down remains viable, but it’s getting stale, and a path up is always available. This weekend’s Saturday Review discusses those paths, their characteristics, and likely objectives. Three stock charts were reviewed (AAPL, TSLA, GM).
Saturday Review Link
Be sure to join us by 9:30am ET for this weekend’s Saturday Review. After discussing the bigger picture and gaming out strategies for playing next week’s likelier opening setups, we’ll do instant analysis of any stock charts that you request… See you there!
Morning Bias
| MON morning signal (triggered at 10:15 ET) | SPX | ES |
| Bias-up: above | 2057.00 | 2054.00 |
| …would target | 2064.00 | 2061.00 |
| Bias-down: under | 2046.00 | 2043.00 |
| …would target | 2040.50 | 2037.50 |
| Signal status: NO-BIAS | FAQ | |
| INTRO VIDEOS #1 and #2 | ||
1. At 10:15, trading above the bias-up signal or under the bias-down signal would put into play a test of its bias-up or bias-down target.
2. Not triggering either bias signal at 10:15 would be “no-bias,” and the bias signals should define the bias environment’s range.
— A test of the opposite bias signal would be targeted if one bias signal was tested before triggering no-bias.
3. Touching the bias signal within 3 minutes either way of 10:15 would invoke a grace period through 10:30 to trigger a late signal.
— “Late” signals don’t require testing the opposite bias signal, but it’s still likely.
4. Still testing the bias signal at 10:30 after invoking the grace period would trigger “noN-bias,” with no bias influence.
Post-market Wrap (recording & summary)
WedEX signals tend to be more reserved on Friday afternoons. But, is this a little too reserved?
The bias environment was entered at its 2053.25 high, and then dipped to 2047.50. Its reaction up to 2052.50 was reversed to a lower low at 2045.00. Lower lows and lower highs is what we call a downtrend. Downtrends aren’t commonly associated with “bullish” signals.
Bouncing to 2050.00 into the close did retrace 61.8% back to 2053.25, which is a proxy for it. The pullback held positive territory, above the open, leaving no unfinished business below. It’s not optimal, but it’s also not complete, and a valid recovery must extend higher without delay Monday.
Gapping down would be disqualified. Otherwise, extending higher Monday without delay would keep alive the aggressive half of the bullish WedEX. We’ll discuss that and other influences during this weekend’s Saturday Review.
Details and other markets coverage are discussed in the post-market Wrap recording here.