The First Trade & Pre-open Tour Recording… An eerie calm.
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…
Volatility made its most obvious display on Wednesday, even before the open. An overnight drop had probed probe under Tuesday’s 2717.50 low to 2705.50, and was recovered to greet Wednesday’s open just short of Tuesday’s 2735.25 highs. That recovery was extended to the morning’s 2748.00 high before reversing back down through the overnight low to 2701.00. The intraday downleg had retraced 61.8% of the recovery and still exhibited optimism in the form of a Running Correction / Falling Wedge. “Ineffectual optimism,” because the pattern resolved down. No “unfinished business” was left outstanding as the session ended at 2702.00/2705.00.
Overnight action’s new info…
Trending up gradually to 2714.00 was retraced down to 2706.00 into Europe’s opens. The reaction to Wednesday’s intraday decline was muted, enabling a quick recovery up to 2717.00.The defensive posturing had paid off, initially, but only temporarily as the recovery was reversed entirely back down to 2704.50. Another recovery, even steeper than coming after Europe, tested 2716.00, and is now reacting back down again to 2707.00… all in positive territory.
If, then…
Wednesday’s session suggests that Tuesday night’s decline has resumed, which was already an effort to resume Monday morning’s decline. Not extending down already overnight isn’t bullish, — only hovering in positive territory is potentially just another instance of “ineffectual optimism.” Yesterday afternoon’s instance resolved down, and hasn’t been recovered. Notwithstanding support along the way, the next lower objective is to retest the 4-week old 2679.00 low, and that should offer only obligatory support. Meanwhile, since yesterday’s sellers gained traction for their efforts, gapping up above 2722.50 would be credible for reversing the trend back up.
First Trade…
[Click here to view the Bias parameters] Exiting the open at 9:45 under 2709.75 would be unlikely to trigger the 2711.00 bias-up signal at 10:15. Exiting the open above 2713.00 would be likely to trigger bias-up.