The First Trade & Pre-open Tour Recording… The traction is sticking.
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…
Trending down through the weekend to eventually touch 2709.00 didn’t affect whether the bullish WedEX could influence Tuesday morning. In fact, gapping down to 2721.00 surged 11 points through the open to maintain the signal. A lengthy 14-point pullback resolved in a 20-point upleg to test 2737.50 into noon to fulfill the signal. WedEX’s influence ends there, which the balance of the session made obvious by sliding to fresh lows at 2705.75. Sellers gained traction through the bias environment exit and the final hour’s entry, before closing action bounced to touch 2720.00. Overbought RSIs at the high printed just after noon to avoid requiring a retest, while oversold RSIs at the afternoon’s low require a retest.
Overnight action’s new info…
Initially firming slightly further up to 2721.50 suddenly collapsed before midnight, attacking yesterday’s low to within 2-3 ticks. A shallower bounce was still sizable, attacking 2719.00 before collapsing again to attack the low. The range has continued narrowing around 2714.00.
If, then…
Regardless of whether last week’s rally was only a temporary corrective bounce, it’s premature to pronounce its passing — let alone the previous decline’s resumption. Yesterday afternoon’s traction and oversold RSIs at its low haven’t been neutralized overnight, so the reversal attempt has no excuse not to become more obvious today. Not already rallying overnight makes the open unlikely to gap up enough to neutralize the afternoon’s traction. Satisfying its fresh lows, retesting oversold RSIs, and holding the next lower objective still could launch another upleg. The afternoon’s FOMC Minutes may prove instrumental to the market choosing its next direction.
First Trade…
[Click here to view the Bias parameters] Exiting the open at 9:45 above 2711.00 would be unlikely to trigger the 2709.50 bias-down signal at 10:15. Exiting the open under 2707.00 would be likely to trigger bias-down.