Pre-market Tour

Be sure to watch the recording if you didn’t  attend the pre-market Tour.  We reviewed the influences from yesterday’s price action, describing how some have resolved (no-bias trending, downside target met) and some have evolved (Symmetrical Triangle’s potential false break reversal, “session-long rally” setup). The remaining templates have limited likely outcomes, so this should quickly become a highly-predictable pattern — and none of those likely outcomes is not to simply range narrowly.

Details and other markets coverage are discussed in the pre-market Tour recording here.

Overnight action had dropped from 2075.75 before Europe’s opens, down to 2069.50. This morning’s open is being greeted back at that last drop’s origin. Aggressively extending the recovery post-open isn’t always necessary to rally, but would be very appropriate in the context of rallying this morning. So, any delay beyond a blip-down or only firming would make a recovery suspect.

Details and other markets coverage are discussed in the pre-market Tour recording here.

The pullback from 2069.25 fell to 2057.50. Reacting back up to 2063.00 is indicating a gap up, which is the first step to rallying this morning. The second step is to maintain the gap up above 1261.00 through the opening 15 minutes of volatility.

A credible rally should gain traction quickly, albeit not necessarily at a steep pace. Otherwise, rejecting the overnight rally has barely begun, and a credible decline would fall steeply back to overnight lows, and then lower.

Details and other markets coverage are discussed in the pre-market Tour recording here.

The overnight recovery’s test of 2059.50 wasn’t rejected immediately. It served for several hours as resistance to a consolidation supported by 2057.00. But it didn’t break higher to serve by proxy as reversing the 2-1/2 week old decline. Rather, a reaction down just attacked 2051.00.

Opening above 2056.00-2057.00 and quickly extending higher could still be credible for extending Friday’s rally. Otherwise, backing-and-filling could test 2041.00 just as noise.

Details and other markets coverage are discussed in the pre-market Tour recording here.

This morning’s Employment Situation report was greeted from the decline’s 2039.00-2039.50 lows. Its knee-jerk reaction spiked down to 2033.00, a preliminary level for the open. A bounce to 2037.50 resolved down to within 2 ticks of the decline’s 2030.00 objective.

Now another bounce is attacking 2033.00 as support again. This morning can still trend in either direction. But post-open action should try replicating the pre-open selling to some degree.

Details and other markets coverage are discussed in the pre-market Tour recording here.