The First Trade & Pre-open Tour Recording… Fear of heights.

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…
Fresh highs at 2476.25 before Thursday’s open had complexity to label them a “new Globex trend extreme” requiring intraday retest. Often the same day, but not Thursday. The morning’s bias-up held its test to put into play an offsetting test of the 2463.50 bias-down signal. A surprising news headline triggered a drop to within 3 points of the objective at 2465.50. Recovering entirely would leave the objective to become “unfinished business below.” Ultimately, Wednesday’s breakout was not confirmed, certainly not optimally. The afternoon 2470.50-2474.50 range overlapped or was supported by Wednesday’s 2471.00 cash session high, which the closing bar overlapped.

Overnight action’s new info…
Europe’s opens ended another narrow overnight range again, which had consolidated down to 2471.00. Also again, the resolution was up, trending up 4 points for two hours. But only temporarily this time. Retesting yesterday afternoon’s highs up to 2475.25 was soon retraced, and then reversed to fresh lows at 2469.25.

If, then…
Reversing the overnight surge is similar to the behavior I had described here yesterday. Then it was a gap up indication having melted away. At least that had probed fresh highs to create an attraction above. Today it is also a failed rally effort — but a shallower effort that avoided fresh highs, and a deeper failure that is probing fresh lows. Those are distributive patterns, which can have immediate effect, or else doom to failure an intraday rally effort. Whichever “unfinished business” is neutralized first, either 2476.25 above or 2463.50 below, a reversal to the other attraction is likely. The overnight reversal and attraction below suggest that first move will be down to test 2463.50, where this afternoon’s bullish WedEX suggests a rally leg awaits. Trend extremes aren’t usually associated with expirations.

First Trade…
[Click here to view the Bias parameters] Exiting the open at 9:45 under 2473.75 would be unlikely to trigger the 2476.50 bias-up signal at 10:15. Exiting the open above 2472.50 would be unlikely to trigger the 2469.00 bias-down signal.

Phonetic dictation…
good morning and welcome it is Friday at Stanford Friday’s morning market tour just one interesting development overnight it’s for the maybe not that clearing but interesting I talked about it in the market Gordon the first trade blog post it essentially here’s the overnight action narrowing right into 2471 2471 which is band Tuesday’s cash session high that was relevant for another reason we’ll talk about and here’s your UPS opens and they Inspire or their the Catalyst it’s not just coincidental that the narrowing range breaks out there let me digress for a moment and go back to the prior night narrow range Europe’s opens inspiring or the Catalyst for whatever not necessarily anything about your UPS opens so overwhelmingly requiring that it Dragon I have a case American markets us markets up but perhaps just not opening down was enough to remove the innovation of the US markets ranging nearly whatever the reason or differing reasons in both cases they don’t have to be the same causes prices went up and then this is what I wrote about and yesterday’s First Trade lug post because at this point this is all we had was a reaction back down two or touching prior Heights and after that there was a fresh High not that it extended but it came off of this base of a temporary probe here is last night probing higher not a new high now I knew High relative yesterday’s range which this was as well above the price rangeshins are generally associated with Trend extremes they aren’t generally associated with Trend extreme this would not be a this would not then be a opportunistic time to originate a reversal that has legs that can extend so the other thing the bullish wed x signal that we got Wednesday’s close the bullets the afternoon this afternoon will Trend up influencenow it’s trying to be maintained trying to extend higher actually every night gold which was an outside day which tested irrelevant level overnight the flash crash load that it already been tested once that recovered to a fresh High and went out overlapping the upper end of the prior range that that’s most of the elements to a setup that says the first break Beyond yesterday’s range likely to Trend in that direction trying to break be on yesterday’s Range High can I have to be maintained not really nuts about the macd and RSI deterioration I would write back to you on this machineto fill in that Gap it’s been tested overnight see if I can happen if your day and then launched a recovery that would be fine perfectly acceptable back above 305 otherwise there’s deeper pulled back levels all in the name of forming a durable bottom okay alright let’s in the recording any questions go ahead and I’ll see you back here before the don’t forget we review tomorrow.