The First Trade & Pre-open Tour Recording… Extreme sentiment.

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…
Friday’s gap up to 2346.00 was at least 6 points short of Thursday afternoon’s 2352.25 prior high. That was too little to overcome the traction gained by Thursday afternoon’s decline. And extending there during the morning’s bias environment was too late. Catalyzed by headlines out of D.C., unfinished business below at 2331.00 was attacked to within 3 ticks into the final hour. Coinciding with prior lows, the timing was levered into a bottom. Its reaction up to 2347.25 held a 61.8% retracement of the intraday drop.

Overnight action’s new info…
Having been corrected by its late bounce, Friday’s drop resumed at Sunday night’s open. Gapping down to 2337.50 quickly extended to and through Friday’s low. Ranging at 2325.00-2329.00 was centered around 2327.00. Breaking lower greeted Europe’s opens within 3 ticks of 2317.00. Its reaction up has been resisted at 2327.00.

If, then…
2327.00 and 2317.00 are the decline’s next two lower attractions that we’ve been discussing. Having tested both, closing back above last week’s prior lows could start to signal momentum reversing back up. Exiting the weekend with extreme sentiment is often a sentiment extreme. Meanwhile, the decline has only a little more room below to briefly test 2311.00 before the template of an uncomfortable pullback evolves into a much deeper, dangerous correction.

First Trade…
[Click here to view the Bias parameters] Exiting the open at 9:45 under 2327.00 would be unlikely to recover the 2331.00 bias-down target by 10:15, which would renew the bias-down signal. Exiting the open above 2335.50 would be unlikely to break under 2331.00 through 10:15.