The First Trade & Pre-open Tour Recording… Another shoe?
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…
A 30-point overnight pullback down to 2720.00 had bounced 26 points back up to 2746.00 before Wednesday’s open. That was sufficient to extend higher, but it didn’t. The overnight lows were retested, and probed down to 2704.00 before the morning bias environment began lapsing. Its 26-point bounce also resolved down going into the afternoon bias environment, and plunged coming out of it. The last minute’s 2652.25 low bounced 20 points to 2672.25 before the futures close. That’s 104 points under Tuesday afternoon’s highs. The two next lower objectives were neutralized at 2671.00 and 2663.75. The next lower objective was put into play at 2637.25.
Overnight action’s new info…
Wide and choppy sideways ranging persisted well through midnight. An earlier dip to 2659.00 was recovered to 2677.50, which was retraced back into the range around unchanged. Europe’s reaction to yesterday’s plunge was easily absorbed, and the relief soon launched a break higher to 2692.50. Its touch of yesterday afternoon’s bias environment “higher prior low” has reacted down 10 points.
If, then… (notes to accompany the Tour recording)
The current break higher has reacted down from barely touching yesterday afternoon’s bias environment “higher prior low” at 2692.50. My next cluster of resistance lies just above it at 2695.00-2697.00. Overnight action never requires a retracement, but it’s still likely so long as no pre-open downdraft has yet developed. I would consider selling that downdraft it appears before extending up to 2695.00-2697.00 or to 2715.50, either of which would be vulnerable to launching another downleg that resumes the decline. The ECB and Mario Draghi will be painting the headlines soon, along with more quarterly earnings releases, and then several econ reports at 8:30.
First Trade…
[Click here to view the Bias parameters] Exiting the open at 9:45 above 2686.00 would be likely also to exceed the 2679.00 bias-up target at 10:15 to renew the bias-up signal. Exiting the open above 2674.00 would be at least likely to trigger the 2671.00 bias-up signal at 10:00. Exiting the open under 2666.00 would be unlikely to trigger bias-up.