The First Trade & Pre-open Tour Recording… Tip-toeing into the open.
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 record intraday drop had extended sharply lower through the close, and much more sharply into midnight. Rallying 113 points through Europe’s opens had retraced it all to within 2 points of Monday’s cash session closing equivalent. A pullback consolidated into Tuesday’s open, which surged 100 points and probed positive territory. Another pullback consolidated into Tuesday’s bias environment exit, which surged 75 points to probe fresh highs… Just a normal Tuesday resolution of an expanding Friday-Monday setup, which we had discussed at Monday’s close. Two exceptions: First, the gargantuan size of each leg. Second, the pattern’s stages were accelerated into earlier timing windows. So, the “scary” morning developed fully overnight, and the short-squeeze came early.
Overnight action’s new info…
A narrow (relatively) 15-point range initially hovered above Tuesday morning’s high. By midnight it had slipped into another narrow (relatively) 15-point range hovering just under Tuesday morning’s high. That “second shoe to drop” feeling has lingered despite a steady stream of supportive, bullish comments coming from investment houses and central bankers. Perhaps the anxiousness is now ending as price is creeping back up into the initial range.
If, then…
Notice that I’m adapting the bottoming pattern for Monday night’s plunge to serve as the template’s “scary” morning. So, the pattern’s short-squeeze resolution is done, right? Maybe. Maybe overdone. Both Tuesday’s open AND its close surged. And the second surge originated too late to gain traction for its effort. All of which would be moot by now had last night rallied through Europe’s opens to indicate gapping up, preferably above 2715-2731. That 2715-2731 range is otherwise resistance, at least likely to be tested if the open can maintain a surge or gap up above yesterday’s last-minute 2700 high. Still ranging narrowly into the open would be vulnerable to trending sharply out of the open, in whichever direction. If down, or if opening strength were to falter, then a pullback has room to test Monday’s 2645.50 cash session close equivalent before threatening to probe under Tuesday’s lows.,, BITCOIN, ETC. Near-term resistance at 7850 is being probed by $500, just over 24 hours since probing our long-standing 6100 target by $200 (u.e. 5900-8300). RSIs are diverging negatively into the resistance test while volume slows. This leg seems close to done, potentially one more false break to fresh highs, before a likely pullback to test “lower prior highs” at 7750.
First Trade…
[Click here to view the Bias parameters] Exiting the open at 9:45 above 2686.25 would be unlikely to trigger the 2682.50 bias-down signal at 10:15. Exiting the open under 2673.25 would be likely to trigger bias-down.