The First Trade & Pre-open Tour Recording… No dissent, or descent.
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…
Wednesday’s pattern was a twisted version of the template that was developing well before its open. Tuesday’s rally had essentially targeted 2673.75, which was fulfilled overnight, essentially targeting 2684.00 and a failure from there. Pre-open CPI triggered a 49-point plunge to 2627.00 that could have been an accelerated version of the template. It wasn’t. All of the plunge was retraced during Wednesday’s first hour, and later exceeding 2684.00 targeted 2698.00-2700.00 that was probed up to 2701.75 into the close.
Overnight action’s new info…
The afternoon’s extended rally had developed after already fulfilling its renewed bias-up target. Not exploiting the opportunity for a refueling pullback had created the vulnerability, opportunity and likelihood for overnight weakness. No such thing. Wednesdsay’s late range persisted briefly down to 2693.50 before resuming the rally, which has extended up to 2719.50. An 11-point pullback bounced bacl into resistance at this morning’s 2713.50 bias-up target, which has pushed back and extended down to 2705.00.
If, then…
January’s highs require an eventual retest, making the decline a temporary correction, or at least the first downleg of a more substantial decline. Meanwhile, that decline’s current retracement is a temporary correction of that first downleg, still needing to retest last Friday’s low regardless of the substantial interim bounce. Retesting the low sooner rather than later can still hold and launch a more significant recovery. But extending this week’s rally starts making the high’s retest likelier first. Expect the market to behave accordingly, with more dissenting opinion like yesterday’s pre-open CPI-reaction plunge — with or without a quick and complete recovery, the difference being predictive. Meanwhile, a gap down isn’t indicated, needed as a proxy for inverting the bullish WedEX to bearish. So, unless today’s pre-open reports were to trigger a repeat of yesterday’s CPI plunge, the next higher objective may be 2753.00-2757.00.
First Trade…
[Click here to view the Bias parameters] Exiting the open at 9:45 above 2715.25 would be likely to exceed the 2713.50 bias-up target at 10:15 to renew the bias-up signal. Exiting the open above 2709.50 would be likely at least to trigger the 2703.00 bias-up signal at 10:15. Exiting the open under 2698.00 would be unlikely to trigger bias-up.