The First Trade & Pre-open Tour Recording… Not so ineffectual optimism.
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…
Monday’s higher open at 2677.00 reacted down a couple of times into negative territory under 2668.00, but didn’t extend. A bigger bounce attacking 2683.00 only stretched the rubber band, and snapping back down eventually probed fresh session lows attacking 2657.00 — filling the week-old gap where Friday’s 2660.00 low had stopped optimistically short. The final hour bounced to unchanged at 2670.00-2671.00. No unfinished business was left outstanding above or below.
Overnight action’s new info…
Yesterday’s late bounce has extended higher relentlessly. First gradually, and eventually a little steeper up to 2688.00. That is 5 points above Sunday and Monday’s highs, probing further into “higher prior lows.”
If, then…
Repeated instances of “ineffectual optimism” began with Friday’s late bounce that had stopped short of support. Its minimum consequence was fulfilled yesterday by afternoon’s lower low, which held a test of support. Several other instances of ineffectual optimism developed before the test, suggesting the test would ultimately fail to hold. Really? The rally since is indicating a gap up above that entire range. Obviously, maintaining a gap up above resistance would contradict the objective of breaking under support. The question is whether the gap up is maintained, or if a gap up is even still indicated at the open. Maintaining a gap up would get every benefit of the doubt for extending higher. Rejecting the gap up anyway would be that much more bearish.
First Trade…
[Click here to view the Bias parameters] Exiting the open at 9:45 above 2680.25 would at least be likely to trigger the 2675.50 bias-up signal at 10:15. Exiting the open above 2687.75 would be likely also to exceed the 2683.00 bias-up target at 10:15 to renew the bias-up signal.