The First Trade & Pre-open Tour Recording… 1987-style.

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

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…
Tuesday’s gap up extended to 2597.50 before reacting down almost 25 points to 2573.25, and filling the gap back to Monday’s close. The 2687.75 bias-up signal had already failed to trigger, putting into play an offsetting test of its 2566.50 bias-down signal. That didn’t prevent the balance of the morning from rallying to fresh session highs. Its no-bias trending could have been invalidated by exiting the bias environment above its 2601.50 bias-up target. The target held as resistance despite being probed up to 2605.50, so it wasn’t for lack of trying that 2566.50 became “unfinished business below.” That still didn’t prevent extending higher, albeit after another 25-point dip to 2580.00. Late highs attacked 2619.00 and took RSIs simultaneously overbought before reacting down to 2603.25.

Overnight action’s new info…
Another trade war attack by China has retraced yesterday’s rally. Swallowed it whole. Bouncing out of Tuesday’s late pullback had never recovered to retest intraday highs. Price soon began drifting back down and retested the pullback’s 2603.25 low by 3 ticks. Flat-to-lower ranging accelerated its pace into and out of Europe’s opens. Headlines soon triggered a plunge through yesterday’s low to 2569.25. A 2-hour consolidation back up to 2580.00 broke lower to 2559.50. That break has been retraced back up to the consolidation’s “lower prior highs” at 2574.00.

If, then…
Avoiding a repeat of Monday’s plunge on Tuesday probably wasn’t bullish. But it left only a very narrow window for tracking the 1987-style crash template — by trending down sharply Wednesday either without delay or by the morning bias environment exit. Having trended down sharply already overnight, a flat or flat-to-higher morning is possible. But the crash template is fueled by intraday selling, and would require resuming the decline aggressively this afternoon. Regardless of the character or path there, 2509.00-2511.00 remains the next lower objective.

First Trade…
[Click here to view the Bias parameters] Exiting the open at 9:45 under 2580.50 would be likely also to exceed the 2585.75 bias-down target through 10:15 to renew the bias-down signal.