Pre-market Tour
The First Trade & Pre-open Tour Recording…
Proper context can start the day with a solid win and make all the difference.
NEW DAILY SCHEDULE
First, watch the pre-open Tour recording HERE <<==
Then, meet in the chaRTroom here by 9:15 ET for updates and Q&A
Through the prior close…
Friday’s opening surge from 2267.00 quickly extended to 2273.50. And that was the end of that. The morning’s bias environment ranged narrowly between 2270.00-2272.50. A quick dip into noon was followed by a drop into the afternoon bias environment exit attacking 2266.00. That was still in positive territory, despite so much time having been spent either consolidating or declining. Being a Friday, the balance of the session firmed back up to 2273.00 through the futures close.
Overnight action’s new info…
Sunday night’s open dipped immediately back down to 2268.00. Drifting down to test 2265.00 through Europe’s opens Monday formed a low that was only pierced until Europe’s opens Tuesday. Anxiousness ahead of British Prime Minister May’s speech drove markets lower. Its low (so far) was a blip-down to 2257.50 which is now reacting back up to test 2265.00.
If, then…
PROGRAMMING NOTE: The pre-open Market Tour is now available only by recording. Scroll to the top of this blog post for its link. Then join us in the chaRTroom by 9:15 ET for any updates and your Q&A…
The 2257.50 overnight low has been relevant support during the current ranging. As such, it was a Pivotal Low last Wednesday, i.e. a fresh low was recovered to a fresh high. Retesting 2257.50 post-open would not be bullish. Retesting it overnight is only a threat. Meanwhile, its test underscores the vulnerability to launching a more durable downleg upon finally probing a fresh high. Having said that, the 2265.00–2266.25 range between Thursday’s close and Friday’s low can mark the difference between rallying this morning, or declining.
First Trade…
[Click here to view the Bias parameters] Exiting the open at 9:45 above 2270.25 would be unlikely to trigger the 2266.00 bias-down signal at 10:15. Exiting the open under 2263.50 would be likely to trigger bias-down. Exiting the open under 2259.50 would be unlikely to recover the 2260.75 bias-down target through 10:15, renewing the bias-down signal.
Pre-market Tour (recording & summary)
The narrow 2264.25-2266.25 overnight range had tried to breakout. It came late and was shallow, barely piercing yesterday’s 2267.25 last-minute high. And it was soon reversed back into the overnight range. Now the 8:30 econ reports have reversed the reaction even deeper, albeit momentarily, down to 2262.75.
Could that be enough of a rubber band stretch, so the post-open action won’t need a similar dip to resume the rally? Possibly. Already, the open is being greeted back at yesterday’s 2267.25 last-minute high. Not exploiting the opportunity would likely mean a deeper post-open dip.
Details and other markets coverage are discussed in the pre-market Tour recording here.
Pre-market Tour (recording & summary)
The site was offline momentarily due to an issue at its host. The link to this morning’s recording is below. Currently, the 2264.00 bias-down signal has been broken, and so has its 2258.25 bias-down target. The next likely support at 2250.50 has been attacked to within 3 ticks. But the more likely objective is 2247.50. And probing under yesterday morning’s low has made the pullback likely to extend into this afternoon.
Details and other markets coverage are discussed in the pre-market Tour recording here.
Pre-market Tour (recording & summary)
The last attack on the 2264.50 overnight high reacted down to 2260.75. That largely retraced the last overnight bounce. And now that dip has been largely recovered to attack 2264.50. Fresh highs up to 2266.00 could be probed before beginning to suggest overnight lows won’t be retested, or broken on the way down to 2257.50 and lower.
Details and other markets coverage are discussed in the pre-market Tour recording here.
Pre-market Tour (recording & summary)
The bullish isolation setup is still forming, and must avoid probing under yesterday’s 2263.50 low. Preferably, entirely. Otherwise, immediately rejecting a quick dip.
If not exploited, a setup becomes as bearish as it would have been bullish (and vice-versa). Fulfilling the isolation setup would target new highs, albeit only 13-14 points higher. Rejecting the setup instead would reinforce Monday’s gap down, which otherwise spent the day like a deer in the headlights.
Details and other markets coverage are discussed in the pre-market Tour recording here.