Pre-market Tour

A Head & Shoulders reversal pattern formed upon the recovery’s earlier attack on 1880.00. Its reaction down fulfilled a 61.8% projection to test 1870.00. Then the reaction down was recovered entirely, as Head & Shoulders patterns tend to do.

The pattern’s Head is being retested up to 1880.75. But Head & Shoulders patterns can hold a retest of their Head, instead of extending the trend. Being an overnight pattern, not yet reversing back down by 9:45 would better enable extending higher this morning.

This is also the critical 1880.50-1881.00 area discussed since yesterday’s close. Testing it post-open WITHOUT extending through it by 9:45 could be very bearish.

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

Recovering up to 1900.00 didn’t turn positive, let alone extend into positive territory. Its reaction has dropped back to the 1887.50 low, probing 1 point under it. And within 1 point of the bias-down target.

In either case, it’s barely threatening to gap under Friday’s 1884.00 low. That would take any recovery potential off the table. Not triggering the 1992.00 bias-down signal would keep the rally in-play.

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

The overnight rally to 1892.00 hasn’t been rejected, but neither has it extended. Still hovering just under 1892.00 kept alive potential for surging at the open, if not already surging into it.

Surging through the open doesn’t assure it being more than a blip-up that finds itself reversing back down just minutes later.  And there’s still no assurance of probing above 1892.00 resistance, which would become moot back under 1885.00.

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

This morning’s First Trade preliminary levels are essentially moot. That’s because of a steep rally from the range that was centering on 1846.00. ECB chief Mario Draghi hinted at a future easing, triggering a surge to 1874.00. That has now reacted down 20 points to 1854.00, still in positive territory, suggesting that this morning will be spent probing above yesterday’s highs to reward the recovery’s sponsorship.

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

Bouncing from the 1829.25 overnight low up to 1843.00 had consolidated back down to 1835.00. Another bounce has probed 5 ticks above 1846.00 resistance.

Recovering 1846.00 through the open would likely extend to test ~1863.00 “higher prior lows” into yesterday’s range.

Back under 1840.00 through the open would target overnight lows either to resume the decline, or else to bounce from testing 1833.00 back above 1840.00.

Details and other markets coverage are discussed in the pre-market Tour recording. (video may be uploading)