The First Trade & Pre-open Tour Recording… Single-digit stranglehold dissolving.
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…
Flat-to-higher ranging off of Wednesday night’s 2645.50 low had reached 2686.00, and started retracing 6-9 points 15 minutes before the Thursday’s open. That more than doubled during the next 15 minutes. A choppy open finally broke lower to fulfill the 2651.00 bias-down target, and the noon hour extended down to 2613.00. the afternoon bias environment’s bounce tested 2645.50 before returning to the noon hour’s low, and the position-squaring window broke sharply lower to 2577.00. The Dow printed a closing loss of at least 1,000 points.
Overnight action’s new info…
Several swings of higher highs and higher lows developed into Europe’s opens. Each leg measured a measly 25 points, give or take, reaching 2617.00 to net a 44-point gain from yesterday’s last-minute low. Europe’s exchanges fell as they played catch-up (or catch-down, as the case may be) with yesterday afternoon’s portion of the plunge. Hovering at the high tried ignoring that for several hours, but recently broke lower about 25 points to 2593.00. Its reaction up to 2607.50 peaked upon testing uptrending support that had defined the series of higher lows. That has now resolved down to fresh overnight lows, within 4 points of yesterday’s last-minute low.
If, then…
A couple thousand points here and a couple thousand points there, eventually we’re talking about a significant move… When I say the market is vulnerable to collapsing into the weekend, I mean that in relative terms. Relative to the two-week old drop. I’ve been describing this week’s multiple two-day setups of expanded selling pressures — beginning last Friday, and becoming more frequent yesterday. Gapping up sufficiently can invalidate the setup’s near-term influence. Either way, Friday Factors are likely to exacerbate a move as the weekend’s illiquidity gets exponentially closer each minute. The potential for collapse is also suggested by the comparison among the three major indexes/averages, which I describe in today’s recording. Gapping up would still need to maintain and extend to prevent another downdraft before the close.
First Trade…
[Click here to view the Bias parameters] Exiting the open at 9:45 above 2615.25 would be likely to trigger the 2609.00 bias-up signal at 10:15. Exiting the open under 2598.75 would be unlikely to trigger bias-up.