The First Trade… Ready for new highs.

Proper context can start the day with a solid win and make all the difference.

CHARTROOM LINK
(pre-open Market Tour begins at 8:55 ET)

Through the prior close…
Surging 5 points immediately at Tuesday’s open fulfilled the bullish scenario, although stronger-handed selling would soon emerge. The 2168.00 peak was soon reversed, falling 14 points through the morning to 2154.00 — of which 10 points was a plunge. Noon hour and afternoon recovery attempts each peaked at  2164.00. No traction was gained, and the close fluctuated around unchanged.

Overnight action’s new info…
Perhaps anxiousness ahead of AAPL’s post-close earnings was inhibiting Tuesday’s recovery attempts. Its post-close reaction broke immediately 2 points above the afternoon highs to 2166.00. And Tuesday morning’s high was probed overnight by more than 1 point to test 2169.00..

If, then…
Tuesday’s close backed off from the highs, but only a little. And that was after expending plenty of selling pressure intraday, for a second consecutive session. Fresh intraday highs at 2171.25 and 2175.50 are still on my radar. Reaction to Wednesday afternoon’s FOMC policy statement is usually volatile, but the morning’s action before it tends either to be inhibited or else to trend. Still, any post-open weakness should barely touch or probe back under yesterday afternoon’s 2164.00 “lower prior highs” to keep new session highs likely for today.

First Trade…
[Click here to view the Bias parameters] Exiting the open at 9:45 above 2171.25 would be likely to trigger the 2169.00 bias-up signal at 10:15. Exiting the open under 2164.00 would be unlikely to trigger bias-up. Exiting the open under 2156.00 would be likely to trigger the 2158.00 bias-down signal.