The First Trade & Pre-open Tour Recording… Overnight 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 impressive surge might have quickly peaked after extending into Tuesday morning. But a 13-point pre-open slide reinserted pessimism and refueled buyers. And probing fresh highs overnight created a “new Globex trend extreme” requiring intraday retest. Threatening to open under the earlier overnight low could have been bearish, but absorbing it put into play a near-term retest of the overnight high. Which is what the morning did, probing it by 2-1/2 points. The balance of the session ranged choppily sideways, above Monday’s highs. “Unfinished business above” was left outstanding at the morning high’s the overbought RSIs.

Overnight action’s new info…
Yesterday afternoon’s choppy sideways ranging shrank in size as it hovered at or above the afternoon’s 2837.00 lows. Surging well before Europe’s opens attacked the 2843.50 upper-end of yesterday afternoon’s range, then extended to new highs attacking 2847.00. Overbought RSIs at the intraday high were neutralized, and no complexity formed the requirement for a retest. Nevertheless, a reaction down to 2843.00 is now attacking 2848.00.

If, then…
If no interim downdraft appears before the open, then the overnight action could be the temporary relief rally that was yesterday’s original template. Three other helpful elements to topping are: avoid gapping up above yesterday’s 2844.50 high, probe the overnight high by 6-8 ticks, all by mid-afternoon. But that’s just enough to optimize the vulnerability to reversing down without leaving unfinished business above. Forming these topping elements without tracking the reversal template could resolve as bullishly as the resolution could have been bearish. Producing only a post-open pullback could still extend down, but probably not durably.

First Trade…
[Click here to view the Bias parameters] Exiting the open at 9:45 under 2840.50 would be unlikely to trigger the 2843.00 bias-up signal at 10:15. Exiting the open above 2845.50 would be likely to trigger bias-up.

Phonetic dictation…
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