The First Trade & Pre-open Tour Recording… One good turn.
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 gap up to 2619.00-2620.00 reacted down to 2613.00 before reversing up sharply. And a lot. For awhile. Trending up didn’t peak until the afternoon bias environment attacked 2654.00. Then it was all retraced back down to 2610.00 at the close. Friday’s last-minute high was overlapped by almost 2 points, but the gap back down to Friday’s 2603.00-2606.00 close wasn’t even attacked, let alone filled.
Overnight action’s new info…
Globex initially consolidated up to 2620.00 for several hours, then suddenly broke higher during Chinese Premier Xi’s speech. This morning’s 2625.75 bias-up signal and 2635.25 bias-up target each enforced a consolidation. And each consolidation resolved up, eventually surging 4 points through yesterday’s high to 2658.00. Reacting down to 2638.00 held through midnight, defining a range that has contained price action since then.
If, then…
The overnight rally is not surprising, other than its size. I had noted at yesterday’s close and in the Market Wrap that Monday’s drop wasn’t necessarily bearish, and the burden of proof was on sellers. Stopping short of filling the Friday’s gap is not “ineffectual optimism,” because so much of Monday afternoon’s drop developed so late. And sellers didn’t gain traction for their efforts, with only the proxy window trending down. Also, even the session’s 44-point collapse developed in positive territory. Now, about the size of the overnight rally. Already retracing back to Monday’s highs all but requires a rally to probe higher through the open, or else the morning’s high will be in. Perhaps even the session high, as traders turn their focus to the televised spectacle of Facebook’s Zuckerberg giving congressional testimony.
First Trade…
[Click here to view the Bias parameters] Exiting the open at 9:45 above 2640.75 would be likely also to exceed the 2635.25 bias-up target at 10:15 to renew the bias-up signal. Exiting the open above 2630.75 would be likely at least to trigger the 2625.75 bias-up signal at 10:15.