The First Trade & Pre-open Tour Recording… Recovery recovered.

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 flat-to-higher open 2577.00-2580.25 isolated a deep overnight probe into negative territory. The detour had held two tests of Monday morning’s bias-down target, before recovering the bias-down signal. If developed post-open, that setup would have targeted tests of both bias-up parameters. When isolated overnight, it’s usually reliable for testing at least the morning’s bias-up signal. In fact, eking higher into the afternoon finally blipped-up 2 ticks to touch the morning’s 2584.00 bias-up signal. The final hour dipped back down to test the open’s range as support.

Overnight action’s new info…
It took a long time for last night’s ranging to resolve. Yesterday afternoon’s 2583.50 highs had rejected a blip-up by reversing down to test 2580.25. The pullbck’s low was tested repeatedly overnight, and its reactions only attacked yesterday afternoon’s highs. This persisted through Europe’s opens before finally launching a rally. Extending up to 2588.00 resistance and through it has now touched the 2590.50 “unfinished business above” that was left outstanding last week.

If, then…
Monday’s final hour dip came too late for its counter-trend sponsorship to be strong-handed. Even if it had been more productive than only dipping down to test 2580.25, it still was likely to be recovered. As noted throughout yesterday and summarized during Market Wrap, only gapping down today could derail a retest of last week’s highs and higher. Fulfilling that retest this morning was likely to start by trending up overnight. But having trended up overnight to already fulfill the minimum objective at resistance does risk a morning dip. Rallies often exploit newly created room that allows expending selling pressure without reversing the trend. Pre-holiday volume is starting to suffer, making it difficult to attract buyers much beyond than short-covering. It is similarly difficult to attract counter-trend sponsorship as volume evaporates, so not reject last week’s highs could find the short-squeeze being very productive.

First Trade…
[Click here to view the Bias parameters] Exiting the open at 9:45 above 2588.00 would be likely to trigger the 2584.50 bias-up signal at 10:15. Exiting the open under 2582.00 would be unlikely to trigger bias-up.

Phonetic dictation…
good morning welcome it is Tuesday it’s time for Tuesday’s Morning Market to her little bit of a rally overnight may be stealing the wind from the sails of the recovery what does that mean actually full feeling the recovery subjective it’s what we’ve been looking for was a retest of last week’s High last week’s High afternoon had triggered a bias up it’s Target being 25 9050 which was only meant to within 4 tix I know it’s just a Tick’s worth difference but we don’t neutralize the attraction unless it’s been met to within one tick unless it’s new I knew it wasn’t here stop stop pessimistically short last week’s I did stop pessimistically short of filling outstanding Gap and that orbit it did touch the structure that contained that Gap back to the week old the prior Wednesday’s close so there was a pat down but the immediate reaction didn’t do anything that justified extending down the immediate past down really just alleviated a relieved overbought condition that have been created off of Thursday’s rally and then some member before yesterday’s open which bullishly isolated the probe under Friday’s Lowe’s isolated it to the overnight that’s bullish testing the overnight and held a couple tests expended a lot of over but has been relieved and now like any corrective Rally or any correction actually in this case rally last Thursday’s and now the overnight Gap up these are aggressive moves easier in patient and they tend to reflect weekends because weekends can’t back and feel they can’t keep me late there’s been no accumulation down here little bit of a base but not actually when we the point being that and by the way that doesn’t have to be the end of the road even in the Rio 2590 50 doesn’t have to be the end of the road here last week’s retested itself being an attack on the prior week size where there is an overnight I have to 9450 that hasn’t been tested intra-day and often is at some point and by the way if this were tested there is already sufficient pull back and refueling and room for noise above the two-week-old High to justify probing 2600 maybe only by three ticks but 2600 so so long as the open is able to maintain above the prioritize maintain above resistance that’s the objective is 2600 today otherwise the downside by not maintaining the Gap up or maintained by actually touching it doesn’t have to be now officially since it was touched overnight at least helpful to neutralizing the attraction3050 this morning which is this morning’s biocept Target if that’s touched and not exceeded the 10:15 then the bias up will have held not in itself bearish but at this stage of this pattern not bearish isn’t necessarily Bush it does not necessarily enough to keep momentum alive especially when it’s a gap up and not intraday trading intraday trending can attract sponsorship gapping up that’s overnight buyers and they’re not looking to add as we get through the morning they’re looking to get out putting pressure on the market so it’s going to be a battle between profit-taking and short squeeze short-covering it’s difficult as volume starts disappearing ahead of the oncoming holiday weekend effectively a four-and-a-half 5 Day weekend Timmy difficult attracting new sponsorship it’s also difficult attracting sponsorship and that’s why he hasn’t rejected the Gap up will give buyers every benefit of the doubt that we’re heading to 2600 otherwise 585 becomes likely the only scenario is this literally looks like this it’s almost drawn to scale in degree and in timing almost it looks like that the open attracts buying doesn’t it just doesn’t get the sponsorship the reinforcements that are needed at least maintain the Gap up 2580 450 the signal which in the block is represented like this the bicep of 8450 if maintain through 10:15 would put into play which is already tested but it would be put into play 2550 is 2600 test of one or both testes objectives comes into play is aggressive so be careful being too trusting and it recovering it doesn’t have to will have ended or at least will be corrected right now that’s resistance until recovered enclosing back under 7540 with resume the decline the pound has two consecutive bumping up against resistance 3285 3190 holding but it is only what had been the Buy Signal level 78 n1705 7810 Thursday or Wednesday before closing under 1 1760 to retest and lowerand the yen is well which had restarted its own rally never really rejected it just had a moment of Crisis that was recovered by closing above recovering actually 8880 88-82 that’s been requested here there’s no tolerance for that failing to hold his supporters could be a pretty quick unwind. 88 yes 8880 fails to hold silver and gold just all over the place never got confirmation didn’t get confirmation a second cuz I give her a close to this is silver to Friday’s break out so very vulnerable as any fresh break at is and that was really on display yesterday reacting back down through the pull back limit back down through Fridays Lowe’s really back to it last week’s was anything lower anything lower it says that this whole recovery is done that 1650 is in play really need to recover 1711 at least 1705 that’s 1711 to overcome this like down gold similarly didn’t confirm its break out before Breaking Bad testing and support recovery 1285 and another shot and a pretty reliable and there’s some nuances to that I’d want to look at the time but otherwise from this vantage point we can at least say back of a 1285 tends to be bullish. Yesterday Sunday night actually above 154 by signal 5404 and then the corrective bounce limit and it hasn’t been rejected so we suspect that it’s chipping away at its resistance but alas 153 is broken there’s potential to resume this recovery and Recovery becomes a rally last night also above last week’s highs above 150 412-5402 overlap last week when December for multiple sessions keeping alive the potential for recovering this week about 58 so closing Friday 5620 was the first suggestion that that move was underway yesterday didn’t fill the Gap back to Thursday before recovering to close by 5625 to confirm crime 5685 to confirm that recovery is underway in natural gas and a warning at the anchor it’s not a recovery above the you can definitely see a difference in Attitudebut it’s the connector that must be recovered through the clothes it is resistance and if it’s not recoveredthe reversal is not succeeding it could succeed otherwise with more work being done to establish a better bottom but that attempt has failed and so Monday did reflect that buy gapping back down but also held support needed a closed under 304 to indicate the leg was reversing down extending down that if this trend was extending otherwise 306 it was that type of a range closing either way would be productive and neither one was triggered closing out a way would have said the next recovery attempt was already underway dipping a little bit lower overnight still have potential to hold but it’s not a very attractive stage of that pad alright any questions please go ahead and post them in the chart room and I’ll see you there before the open good luck today

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