The First Trade & Pre-open Tour Recording… Back at the highs.
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…
Thursday was likely to extend Wednesday’s rally, and the open was required to gap up if the rally was going to resume. Indeed, Thursday’s 2905.00 open was already 5 points above Wednesday’s high and 15 points above the overnight low, and a brief consolidation resolved up sharply to 2912.00. Reacting down to 2902.00 stopped optimistically short of touching Wednesday’s “lower prior highs,” which was an appropriate characteristic for this stage of ending the two-week old pullback. The reaction was recovered to within 1 tick of the open’s high — stopping pessimistically short, which tends to be bullish from a contrarian perspective. The balance of the session ranged choppily, narrowly sideways to the highest close since August’s high at 2910.25.
Overnight action’s new info…
Thursday afternoon’s narrow, choppy range persisted through midnight, dipping only to 2907.50. Breaking higher into and out of Europe’s opens tested 2917.00. A pullback down to 2913.25 is now trying to resume the rally.
If, then… (notes to accompany the Tour recording)
Dipping only to 2902.00 Thursday created a position of strength, or anchor, that allows a deeper dip to “lower prior highs” at 2897.00 if needed. Thursday afternoon’s extra dip may already have checked that box, which we’ll know by Friday’s open maintaining a gap up. Gapping up is necessary to resume the rally immediately, since Thursday’s rally didn’t gain traction for its effort. Being a Friday, the morning’s bias is likely to persist through the noon hour. Other reliably predictive Friday Factors may come into play in the afternoon.
First Trade…
[Click here to view the Bias parameters] Exiting the open at 9:45 above 2915.25 would be likely to trigger the 2912.25 bias-up signal at 10:15. Exiting the open under 2909.50 would be unlikely to trigger bias-up.