The First Trade & Pre-open Tour Recording… Is today the day?
Proper context can start the day with a solid win and make all the difference.
NEW 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…
For a third consecutive session, Monday gapped up and extended higher into the afternoon, to a new trend high close. Retesting Friday’s overbought RSI and bias-up target were neutralized along the way. A new (trend) high close neutralized a couple of requirements in the process. Room for noise beginning at 2327.00 was satisfied, and also held through the close. But another overbought RSI and bias-up target were left outstanding at 2329.00 and 2331.50, respectively.
Overnight action’s new info…
Monday afternoon’s 2327.75 pullback limit had been violated and a sell signal under 2525.75 was being tested into the close. Gradually drifting lower attacked the signal’s 2322.75 objective to within 2 ticks ahead of Europe’s opens. Narrow ranging from there has been resisted by 2325.75.
If, then…
Three consecutive sessions may be this leg’s streak for gapping up, as none is currently indicated by overnight action. So, is trending higher intraday also ending its streak? Possibly, if not probably — closing yesterday under 2327.00 after probing above it does suggest upside momentum is waning. But probing higher intraday remains possible, if not probable — the overnight pullback still has some room below to 2321.50, while remaining in the orbit of yesterday’s 2329.00 and 2331.50 “unfinished business above.” Even a deeper pullback could test “lower prior highs” at 2313.00 and be attracted back up to Monday’s 2319.00 opening print. Fed Chair Yellen’s Senate testimony this morning will likely be inhibiting, and then probably a catalyst, to send price in both directions. Regardless of the vulnerability otherwise, we can’t yet discount another new high close today.
First Trade…
[Click here to view the Bias parameters] Exiting the open at 9:45 above 2322.75 would be unlikely to trigger the 2321.50 bias-down signal at 10:15. Exiting the open under 23219.00 would be likely to trigger bias-down. Exiting the open under 2327.75 would be unlikely to trigger the 2330.75 bias-up signal.