Posts by Rod David

Proper context can start the day with a solid win and make all the difference.

CHARTROOM LINK
(pre-open Market Tour begins at 8:55 ET)

Through the prior close…
Trending down Thursday night had produced a third downleg since Wednesday’s top, while fulfilling the likely 2039.25 pullback objective in reaction to the pre-open Employment Situation report. A couple of post-open dips through Friday’s opening 15 minutes of volatility touched 2034.25 but failed to resume the decline. A bottom was obvious when 2039.25 was recovered after two econ reports had exceeded expectations. Expectations for a morning-long substantial rally tested 2057.25. The afternoon extended until touching 2067.00. Buyers gained traction for the effort by exiting the bias environment at 2:30 above the noon hour’s range, and then entering the final hour above the bias environment’s range. “Unfinished business below” was left outstanding at 2048.75.

Overnight action’s new info…
Immediately dipping to 2061.00 was gradually recovered to momentarily probe a fresh high at 2068.00. Reacting back down to attack the 2061.00 was recovered to fresh highs, extending to 2071.50.

If, then…
Friday’s new high close all but requires an eventual higher close before a durable decline would be credible. That does not prevent a temporary decline. The 2067.00-2068.00 area would have been last Wednesday’s next higher objective, had the morning’s rally extended into another timing window. Now that objective is being me, and its attraction above neutralized. Regardless of how high it might be probed this morning, holding its test as resistance would likely launch a correction back down to the 2048.75 unfinished business below, if not also to 2041.00. The alternative to exploiting this pullback opportunity would instead likely extend the rally at a steep slope until probing last year’s 2096.00-2098.00 highs.

First Trade…
Exiting the open at 9:45 under 2065.00 would be unlikely to trigger the 2068.25 bias-up signal at 10:15. Exiting the open at 10:15 above 2071.25 would be likely to trigger the 2068.25 bias-up signal at 10:15. Exiting the open above 2075.25 would be likely also to exceed the 2072.75 bias-up target to renew the bias-up signal.