The First Trade & Pre-open Tour Recording… Anti-subpoena power.
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…
Tuesday’s open was greeted back at the lower-end of its overnight range. The overnight range had still felt the influence and momentum of Monday’s steep decline. Its minimum objective of 2641.50 had been touched earlier overnight but its rejection failed. The next lower objective at 2635.00-2638.00 was met during the open, and its break came within 1 tick of the 2623.00 target at the afternoon low. The bias environment reversed up to recover all of those objectives, and the balance of the session extended to recover positive territory up to 2653.00-2654.00. The rally gained traction for its effort.
Overnight action’s new info…
A tree fell in a forest last night. Globex began like a mirror image of the prior night, immediately extending the late intraday surge to 2658.00, then immediately starting a narrow range between 2654.00-2656.00. That was blind-sided by headlines that Mueller wants an interview. And wants it bad. Like, subpoena in the pocket bad. Not terribly surprising news, but thin volume at that time enabled a 12-point plunge to 2643.50. The balance of the night gradually recovered the original surge’s high up to 2658.50. Another plunge to 2651.00 has quickly retraced up 61.8% and more to 2657.00.
If, then…
Having gained traction for its effort, Tuesday’s recovery was likely to extend higher today, unless the open were to gap down sufficiently. The overnight knee-jerk reaction to Mueller’s big subpoena headline was an opportunity to gap down, but it was absorbed. Its retracement suggests that fresh highs are still intended, at least this morning. The second overnight dip suggests that fresh highs might not be tenable. But yesterday’s traction combined with now recovering two overnight plunges also requires probing higher immediately, or else a post-open plunge becomes likely. The afternoon’s FOMC policy statement’s reaction will depend greatly on what is accomplished this morning.
First Trade…
[Click here to view the Bias parameters] Exiting the open at 9:45 above 2660.25 would be likely to trigger the 2658.50 bias-up signal at 10:15. Exiting the open under 2655.00 would be unlikely to trigger bias-up.