The First Trade & Pre-open Tour Recording… Fasten your seat belt.
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…
Friday’s gap down and dip to 2457.00-2459.00 was all that remained from its pre-open dip to 2455.50. The collapse it had threatened was avoided for the open by trending up through 9:45. The morning’s 2465.00 high failed to recover positive territory, keeping alive the collapse potential. But any remaining selling pressure was expressed by a dip attacking the 2457.00 opening low.
Overnight action’s new info…
Hurricane Irma devolved faster than models had been predicting. Sunday night’s open reflected the surprise and its relief, gapping up 6 points to 2467.00 and soon breaking higher to test the gap back up at the prior Friday’s 2473.25 cash session close. That was relatively early in the night, but it is still being tested after having extended only to touch 2475.00.
If, then…
I asked at Friday’s close whether the session’s intraday pattern would resolve the following night, as did Thursday’s. That pattern was bearish, failing to recover positive territory that might have rejected the overnight probe of fresh lows. Sunday night’s gap up doesn’t delete Friday’s question, but adds another. First, post-open action can still trend down, despite gapping up this morning. The gap from the prior Friday’s 2473.25 close is influential resistance regardless of being filled intraday, which gapping up would suggest is being tested by extreme optimism. The second question to now ask is whether not trending down will instead trend up relentlessly. Gapping up above Friday afternoon’s highs is forming a sort of “session-long rally.” Not an optimal setup, but still credible if the open were to trend up.
First Trade…
[Click here to view the Bias parameters] Exiting the open at 9:45 2474.00 would likely also exceed the 2472.25 bias-up target at 10:15 to renew the bias-up signal. Exiting the open above 2467.75 would be likely at least to trigger the 2465.75 bias-up signal at 10:15.