The First Trade & Pre-open Tour Recording… Bouncing into proximity.
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 2736.50 open was backing-off of the 2741.50 overnight high, but still gapped up 9 points from Monday’s close. It was still much more a test of the recent range’s upper-end, opposite of Monday’s open gapping down to the same range’s lower-end. And it was no more likely to extend beyond the range without extending immediately. Which, like Monday, it did not. Just drifting back down through the morning to attack Monday’s 2727.25 close could have sufficed for the early close session, but US-China trade war headlines triggered a slide to 2712.00 by the close. Ending back under 2718.00 helped to maintain the decline’s traction, which still needs confirmation by extending down Thursday without delay, regardless of a possible bounce during the Globex holiday trading.
Overnight action’s new info…
Tuesday night’s Globex open blipped-down to 2711.00 and then proceeded to bounce, to within 2 ticks of Thursday morning’s 2724.50 bias-up target. Last night’s session initially dipped to retrace almost all of the bounce down to 2712.50. But no deeper. And rallying through Europe’s opens has extended to 2733.00, which is probing slightly above where Tuesday’s US-China trade war headlines triggered its slide.
If, then…
Immediately extending Tuesday’s slide is not a likely scenario after having bounced so much overnight. But another confirmation setup remains valid since overnight action didn’t get the opportunity to reject a probe lower, and that is to immediately trend down through the open and eventually end under Tuesday’s close. Just closing back under 2718.00 would at least keep alive downside momentum into the weekend. None of that is currently indicated, and trending up through an open that is back at or above the last downleg’s origin would be likely to extend higher through the morning. The trick to that isn’t extending higher, but not to reject the origin’s recovery, which is as much resistance as the recent range’s upper-end.
First Trade…
[Click here to view the Bias parameters] Exiting the open at 9:45 above 2726.50 would be likely to exceed the 2724.50 bias-up target at 10:15 to renew the bias-up signal. Exiting the open above 2721.25 would be likely at least to trigger the 2718.00 bias-up signal at 10:15.