The First Trade & Pre-open Tour Recording… Raining cats, not yet dogs.
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…
Friday afternoon’s rally off of its 2630.00 low resumed Sunday night, albeit shallower. But it unfolded in two segments that hesitated at 2637.50 and 2655.00, which are 38.2% and 61.8% extensions of the relevant segments of Friday afternoon’s rally — so, presumably the same sponsorship. A post-open 30-point pullback stopped optimistically short of filling the gap back to Friday’s 2618.25 close. Those optimists were sorely missed just when they were needed most, to maintain the afternoon probe of fresh highs up to 2671.50. The closing dip to 2645.75 probed back under the morning’s 2654.25 high, missing a final opportunity for the intraday rally to gain traction for its efforts. Which continues to suggest the bounce is only a temporary correction.
Overnight action’s new info…
Where Sunday night’s open immediately retraced Friday’s late reaction down from fresh session highs, yesterday’s late reaction down has extended lower overnight. Not for lack of trying — a bounce up to 2659.25 soon reversed back down, extending to 2636.25 out of Europe’s opens and consolidating up to 2644.00 for several hours. That ranging just broke higher, now touching 2648.00.
If, then…
Yesterday’s expenditure of buying pressure failed to close above relevant resistance, which continues to suggest the bounce is only a temporary correction. A proverbial “dead cat bounce.” The overnight dip isn’t yet deep enough to prove it isn’t just correcting yesterday’s rally. Anyway, a lower open would still require being maintained through the open to influence intraday action. Meanwhile, absorbing a weaker open could be rewarded by retesting yesterday’s highs up to 2673.75.
First Trade…
[Click here to view the Bias parameters] Exiting the open at 9:45 above 2650.50 would be unlikely to trigger the 2645.50 bias-down signal at 10:15. Exiting the open under 2640.75 would be likely to trigger bias-down.