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

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…
Holding Tuesday morning’s 2643.00 bias-up signal had put into play an offsetting test of its 2636.50 bias-down signal. No-bias trending tested its 2648.25 bias-up target, anyway, as the bias environment began lapsing. Any higher any later would have invalidated the no-bias. Otherwise, buyers had just expended as much energy possible to still not gain any traction for their effort. Dropping through the noon hour resumed dropping out of the afternoon bias environment. Extending down to 2628.00-2629.00 went out within 3 ticks of the rally’s prior upside objective 2631.75, within 3 minutes of the cash session close.

Overnight action’s new info…
Immediately dipping a little deeper was quickly retraced back up to 2631.75, but only briefly. Continued China weakness helped to extend the decline, along with another possible detour in tax reform, falling even lower to 2620.00 just ahead of Europe’s opens. Price action into and out of the low has formed an inverted Head & Shoulders pattern up to 2626.00.

If, then…
2631.75 was likely to be tested yesterday, and its resolution was expected to be predictive of the next move. Not resolving its test decisively suggests an equilibrium response — today’s session is vulnerable to trending aggressively in one direction, and then reversing, both intraday. This equilibrium can be negated by the open immediately extending beyond a relevant level, such as a bias target. Otherwise, we’ll expect an early trending effort, and anticipate its reversal. Already rallying into the open would be vulnerable to attacking or retesting the overnight lows, and then recovering. Extending a pre-open rally into the morning would be vulnerable to reversing back into negative territory.

First Trade…
[Click here to view the Bias parameters] Exiting the open at 9:45 above 2628.75 would be unlikely to trigger the 2626.00 bias-down signal at 10:15. Exiting the open under 2624.00 would be likely to trigger bias-down.

Phonetic dictation…
good morning and welcome it is Wednesday it’s time for Wednesdays Morning Market to her the word of the day maybe equilibrium come back to that in the moment first big picture there’s Monday’s brief High the basically believe rally on the Improvement or advance that is advancement in the over the weekend in a tax reform bill really just a relief rally because headlines and major advancements said then coming down the pike starting with Tuesday Tuesday and then Wednesday into Thursday so do we call it at 232 and 1/2 day rally that was just a retest after the Flynn misreporting created this huge reaction down a huge reaction to his 2626 26 so why do I go back through all of that because that’s being retraced again on now overnight news among other things continuing kind of running a little old now extended ready to bounce China’s problems stock market problems as being a negative contributor that’s contributing to Tech weakness which is more of a symptom or it becomes a vicious circle I suppose as the tech problems that we already looked at Saturday dominating the ndx which is been underperforming but become symptomatic driver and then symptomatic anyway but it also I renewed issues yesterday and today overnight on tax reform so that’s been corrected we’re also getting a little old a little extended an hour reaction down so we’re kind of right at the precipice of one or the other as I said being extended in the decline ready to bounce or ready to collapse and so of course with the market likely to do one or the other it’s going to do both that’s what equilibrium is basically that having extended by the way we extended down overnight here’s yesterday’s drop within the within 3 minutes of the 175 which drop was on its way to to producing which it’s retest before the open road Riot retest if that were at all compromised would require 2631 75 325 was tested into the clothes not dispensed with decisively it was proved it was in position to close decisively under it did not it was recovered the market was in position to recover it through the clothes did not so that’s the equilibrium at a very relevant level 2635 being objective ultimate objective which was 5725 still testing it it’s sort of an indecisiveness but it’s very opinionated indecisiveness and so the market tens and responsein equilibrium responsein both directions of course not at the same time that would be a neat trick but trending in One Direction reversing it trading in the opposite direction 7th least two different directions substantial directions today are likely sometimes 3 or 2 of one one of the other the exception is when the open has extended has done by proxy what the prior session didn’t do by stopping at that relevant level if overnight action can extend it agree that the next open compensates for the delay then forget about equilibrium last night almost 50 which was touched at the low gapping down under or extending under or just renewing the buyers down signaled by failing to Old 26 2015 through 10:15 that would break free from any magnetic attraction to 2631 75 signal is 2626 notice that’s being tested here as well as this inverted Head and Shoulders pattern forms inverted Head and Shoulders pattern with initial potential to about 26 28 75 3250 26018 extension to 36253 650 what do we know about Head and Shoulders is they often there called reversal patterns for a reason because they tend to reverse they don’t always they don’t always if they don’t reverse than they extend down how far do they extend down that’s the interesting thing because we’re at 6118 or 16018 or 26018 extension from left shoulder to right neck while that is the likely reversal potential if the head and shoulders instead of reversing continues then it’s extension tends to be a hundred or two hundred percent extension of the left shoulder right neck lines and 26 1850 maybe 26 1450 so this pattern extends down rather than Rally’s 1814 and above 5 + 3 perfect pattern to a company in equilibrium when caveat disclaimer To The Head and Shoulders that develops overnight if it doesn’t influence the opening 15 minutes about influences and 15 minutes it’s no longer influential influence during that window because it’s otherwise donesomeoneradio says break in Copperas and confirm today that could be bullish and silver also bouncing where a second consecutive lower close would be bearish so the long bond has for the first time yesterday I’ll be at within or overlapping prioritize produce the highest close of the range and this is after a couple of dips and tests of support extending higher overnight maybe it’s just stuff like the safety or it’s it’s help to buy a flight to safety that is in stocks falling but if on its own accord it can close higher today fresh how I will give it everybody for the doubt that a much more substantial rally is underway bounce yesterday the first must hold pull back low 5680 that produce the 5740 by signal that triggered very briefly so the fate of extending the near-term 6105 or 9 probably depends on holding 5680 today and preferably closing 5740 and held it as quickly preferably would be every bit as powerful a 302 or recovered and by the way it would also help the Greek tomorrow’s report from a position of strength currencies that would be pretty substantial pretty effective needs to be maintained through the clothes otherwise it would have been bullish or at least maintaining it today’s the day will resolve but the pattern is to give back the Gap up if that pattern can be broken today by not returning the Gap up then we could have a another rally leg and extension of the leg off the low in order to seal it’s basically 133similar to the

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