The First Trade & Pre-open Tour Recording… 56? Try 36.

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…
There was nothing near-term bullish about retesting 2767.00 Sunday night and post-open Monday. Having held Friday to launch its intraday rally, its support properties were deleted, and now the decline must extend to test 2756.00. Quickly rejecting the overnight and intraday dip might have avoided the extension, except that the opening 15 minutes of volatility were still holding at or under 2767.00. More at than under, in this case. And that included gapping down through both bias-down parameters, expending a lot of energy. But it created a position of weakness, and any rally it launched would be doomed to failure. The morning rallied back up to its 2778.00 bias-down signal, which the afternoon retested before probing by 2 points through the close.

Overnight action’s new info…
The party got started early last night. A quick retest of the 2780.00 post-close high reacted back down to 2778.00, and then plunged to 2762.50 on the announcement of new tariffs against China. Consolidating back up to 2767.00 plunged again to 2753.50 — possibly on news of China striking back, perhaps in reaction to news that General Mattis is visiting South Korea to reinstate their previously called-off joint drills. Regardless, consolidating around 2756.00 slid another 20 points into and out of Europe’s opens to test 2736.00. Bouncing since then has tested 2751.50.

If, then…
Unless already rejected overnight, the objective of Monday’s late break was to fill the gap back up to Friday’s 2784.50 close, at least 5-7 points higher if not 10. Any higher would have started putting into play the 2796.00 and 2798.00 objectives above. Unless already rejected overnight, which is the case. Exceeding 2756.00 by 20 points does not change the bearish-bullish path described Saturday, that started tracking Monday — to avoid further delay in testing 2756.00 so that selling pressure couldn’t refuel. Buyers didn’t gain any traction for Monday’s bounce, which did refuel selling pressure to a degree. The question is whether that added degree of refueling is being fulfilled by the overnight lows and their intraday retest. The answer will be in whether 2756.00 is recovered through the close.

First Trade…
[Click here to view the Bias parameters] Exiting the open at 9:45 above 2756.00 would be the best chance at rallying back up to 2767.00, regardless of the resolution from there.