Pre-market Tour

The reaction up from overnight lows has stalled around 2056.00, ranging 1-2 points around it ahead of the open. Not reversing back down almost immediately post-open could probe temporarily above yesterday’s highs. Otherwise, a post-open repeat of the overnight drop to 2047.25 would be repeated, targeting even lower if the bias-down signal is triggered.

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

The 2056.00 bias-up target was attacked to within 1 tick while reacting down from testing the 2061.25 renewed bias-up target. Neither of which is predictive without knowing how their tests will have resolved at 10:15. But the overnight rally should resume without much delay if it intends to extend intraday. Similarly, the bias-up target and its 2051.00 bias-up signal should be challenged early if the upside traction is inverting.

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

Fresh lows down to 2020.75 are consolidating pre-open around yesterday morning’s 2022.00-2023.00 lows. The resolution to their post-open test would establish direction for the balance of the morning.

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

The reaction down from overnight highs has extended as low as 2031.75 ahead of this morning’s open. Sunday night’s 2030.25 open is dangerously close, and while not an actual signal, not holding it through the open would help to confirm the bounce since Thursday’s gap down had ended.

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

The slide and its relentlessness continued to lower lows attacking 2013.00. Exiting the open back above 2019.00 would suggest at least this leg was done, enough to allow a morning bounce to correct it. Otherwise, the trend remains down, next targeting

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…
Wednesday’s 5-6 point gap down to 2036.50 extended down through the morning to test 2029.00. Bouncing to within 2-3 ticks of 2036.50 said its goodbyes, and then slid to 2025.00 before the close. A late bounce stopped 2-3 ticks of 2030.75, whose recovery could have invalidated the breakout.

Overnight action’s new info…
The slide resumed without delay, and has extended down without relent. Eventually ranging around this morning’s 2019.25 bias-down target has touched 2017.50.

If, then…
Two days ago I listed the reasons why a downturn had become overwhelmingly likely. I included the warning that not quickly exploiting the list would become likelier to resume the rally. Last night’s slide suggests that window may be closed. But now two new factors might inhibit the ‘s near-term momentum. First is the 2017.00-2020.00 overnight lows, which we had discussed already as natural support. The “lower prior highs” could interrupt the likelier 2009.00 objective. Second is the overnight slide’s relentlessness, a setup which always is vulnerable to inverting at the open. Put all of this into the context of being hours away from a 3-day holiday weekend. and at least we can give more credibility to any opening trending.

First Trade…
Exiting the open at 9:45 under 2017.00 would be unlikely to recover the 2019.25 bias-down target through 10:15, which would renew the bias-down signal. Exiting the open above 2028.50 would be unlikely to trigger the 2025.25 bias-down signal at all 2009.00.

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