The First Trade & Pre-open Tour Recording… Late turn, or last gasp?
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…
Bouncing overnight had been consolidating for hours around the morning’s 2781.50 bias-up signal. The open didn’t trigger it, requiring the offsetting test of its 2766.00 bias-down signal. Its break into the noon hour soon tested 2750.00, which held another two tests to define the afternoon’s low. An interim bounce to 2767.00 failed to exploit the opportunity to recover 2758.00, let alone 2770.00, which could have signaled this week’s pullback has ended.
Overnight action’s new info…
Two uplegs were interrupted by a drop to fresh lows. The second upleg is hovering around the first upleg’s highs, on the verge of losing patience with not yet breaking higher. Globex began by firming up to what is this morning’s 2759.50 bias-up signal. Almost immediately upon touching its resistance, price collapsed 14 points to probe 3 points under yesterday’s low to 2745.00. That’s the gap from last Thursday’s close, and its support soon reacted up 17 points to test 2762.00. All of that had developed before midnight. Since then, ranging sideways has been supported by yesterday’s 2754.00 close, which is now being retested.
If, then…
Wednesday’s lows probed into the gap between last Thursday’s 2745.00 close and Friday’s 2757.00-2759.00 gap up. Gaps are dense areas of support (or resistance) until chipped away, so it’s interesting that the reactions from the gap were relatively shallow. And it will be surprising if Thursday’s open doesn’t resolve the gap’s test immediately one way or the other. Breaking higher must do more than just recover 2758.00 to even begin reversing yesterday’s close under it — triggering bias-up, if not also threatening the bias-up target, would be more in-line with a morning intending to rally. Otherwise, the next objective below is essentially “lower prior highs” in the 2735.00 area.
First Trade…
[Click here to view the Bias parameters] Exiting the open at 9:45 above 2760.00 would be likely to trigger the 2759.50 bias-up signal at 10:15. Exiting the open under 2753.00 would be unlikely to trigger bias-up.