The First Trade & Pre-open Tour Recording… Restrained 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…
Sunday night’s relentless decline had tested the next lower objective under 2745.00 at 2735.00 by 2 points. Retesting it after the opening 15 minutes of volatility prevented it from offering support. The next lower objective at 2726.00-2727.00 was also tested too late, as the morning bias environment was lapsing. And the next lower objectives at 2711.50 and 2706.00 were probed in time to renew the afternoon bias-down signal. Testing the last objective at 2701.50 down to 2697.00-2700.00 was rejected on a timely basis this time, recovering into the final hour. Closing back above 2706.00 and 2711.50 put into play 2726.00-2727.00 which was attacked through the close up to 2723.50.
Overnight action’s new info…
Wide-ranging as it has been, the market has only hovered above yesterday’s late highs. The 2716.25 cash session close was retraced before the late rally resumed. Eventually extending up to 2728.50 ahead of Europe’s opens, also fulfilled the 2726.00-2727.00 objective. Its reaction fell back to 2716.25. That might be an obligatory low, which would make its current reaction an obligatory bounce — a big one, now entirely retraced up to 2728.50.
If, then…
Yesterday’s lows formed a credible bottom, but it can’t afford much hesitation before being productive. The pattern’s minimum objective is already fulfilled, and that is under any prior high whose recovery would signal the trend reversing up. Probing higher overnight does conserve buying pressure, but only temporarily. And still being near recent lows makes it more difficult to absorb another downdraft, so extending the rally without delay would be optimal. Otherwise, the nearest sell signal could be back under 2711.50.
First Trade…
[Click here to view the Bias parameters] Exiting the open at 9:45 under 2725.25 would be unlikely to trigger the 2726.25 bias-up signal at 10:15. Exiting the open under 2723.75 would be unlikely to trigger bias-up.