The First Trade & Pre-open Tour Recording… It survived the weekend.
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’s open gapped down 16 points to 2806.00, fulfilling the next lower objectives at 2805.00.That was 14-15 points above the pre-open low, which the first half-hour probed down to 2889.00. If not rejected into the noon hour, then the next lower objective at 2766.00 would be in-play. The relentless slide met it, and its room for noise down to 2760.00 at the cash session close. Post-close action spiked down to 2755.25. All of which retraced January’s rally by 61.8% back down to December’s ~2700.00 highs, reversing the first week of the annual earnings onslaught.
Overnight action’s new info…
Extending last week’s decline would next target 2747.00 and 2738.00 then 2722.00. Sunday night’s opening bar pierced 2738.00 by 2 ticks. It was probed and retested, but not broken before price firmed through the night to attack 2752.00. A pullback recovered to 2755.00 before diving into Europe’s opens. That held 2745.00 and recovered to test 2756.00 back at Friday’s post-close lows. That only seems to have angered and awoken last week’s decline, as the past 3 hours have trended straight back down to — and now 3 points through — 2738.00.
If, then…
Isolating the probe under Friday’s lows to the overnight would have formed a setup capable of new highs before allowing the next downleg. The past several hours plunging 20 points makes that unlikely. Still probing fresh lows at Monday’s open, and not recovering 2747.00 and 2738.00 would next target 2722.00. Testing it at the open could find no sellers, and produce a corrective bounce. But any bounce at this stage is only corrective, or at least should be required to prove otherwise.
First Trade…
[Click here to view the Bias parameters] Exiting the open at 9:45 under 2743.50 would be likely to trigger the 2747.25 bias-down signal at 10:15.