The First Trade & Pre-open Tour Recording… No takers.
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…
Tuesday’s 2681.00 gap up was under the 2688.50 overnight highs that had probed above prior highs. The rejection kept alive a string of “ineffectual optimism” that had defined price action since Friday afternoon’s 2659.75 low. That was largely retraced during Tuesday morning’s drop, but the afternoon plunged to 2616.00 during the bias environment. The low filled a two-week old gap that held, leaving a choppy afternoon that closed at 2634.00-2635.00.
Overnight action’s new info…
Tuesday afternoon’s bounce initially firmed to attack 2640.00. That lack of upside commitment was eventually exploited by a single one-hour drop to 2626.00 well before midnight. Europe’s opens triggered a surge to 2637.00, which was retraced as quickly as it had developed. Retraced and reversed to fresh overnight lows. A dip attacking 2618.00 is now trying to recover 2624.00.
If, then…
The gap filled by Tuesday’s low had formed by stopping optimistically short of fully bottoming before launching a rally — the rally that has now been fully retraced. Tuesday’s bounce stopped short of recovering “higher prior lows” that would have signaled the gap held. And overnight action hasn’t extended Tuesday’s bounce. So, regardless of yesterday afternoon’s bounce having stalled the decline, Wednesday is being greeted by the ongoing test of a tenuous gap. Potential for another corrective bounce this morning probably diminishes greatly if not already underway coming out of the open, targeting the gap back up to Tuesday’s close. Trying to resume the decline would find more dominoes ready to fall.
First Trade…
[Click here to view the Bias parameters] Exiting the open at 9:45 under 2621.25 would be likely to trigger the 2624.25 bias-down signal at 10:15. Exiting the open above 2634.00 would be unlikely to trigger bias-down.