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…
Tuesday broke two streaks. The first was not gapping up following three consecutive gaps up. But after holding a test of the 2321.50 bias-down signal down to 2319.75, Tuesday adhered religiously to this leg’s daily tradition of extending to new highs into the afternoon. Objectives left outstanding from Monday and created Tuesday morning were all neutralized along the way up to the afternoon bias environment’s 2335.25 peak. Surging into the fourth consecutive higher attacked 2338.00. Tuesday did break one other streak by leaving no “unfinished business above.”

Overnight action’s new info…
A quick pullback tested Tuesday afternoon’s high as support down to 2334.25. Consolidating narrowly until a midnight surge probed new high at 2340.00. There was no complexity to the surge before it reacted back down under Tuesday’s highs to within 2 ticks of the overnight low.

If, then…
Tuesday was the first session of this four-day rally to end in a short-squeeze. That’s not a sell signal itself, but it does reflect a new degree of impatient buying, which suggests that optimism is getting excessive. The overnight surge did not qualify for requiring an intraday retest, but it is a new trend high, so exiting the open under the overnight low could launch a pullback. Temporary backing-and-filling has room down to 2327.00 and 2324.50 before suggesting something more substantial underway. Avoiding a pullback this morning and extending higher would next target 2343.00-2344.00, but remain vulnerable to the indications that momentum is weakening. Regardless, like yesterday, be careful not to rely on early price action persisting — a lot is happening before 10:15, which I describe in today’s Tour.

First Trade…
[Click here to view the Bias parameters] Exiting the open at 9:45 above 2337.75 would be likely to trigger the 2336.50 bias-up signal at 10:15. Exiting the open under 2334.00 would be unlikely to trigger bias-up.