The First Trade & Pre-open Tour Recording… Buyers are still laying low.

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 morning’s rally to 2940.00 sapped even more energy from the rally than had been suggested by Tuesday afternoon’s narrow ranging down to 2934.00. The sideways ranging persisted overnight to greet Wednesday’s open. The range expanded slightly intraday — but not to fresh highs, only probing under Tuesday afternoon’s lows. Lower and lower lows that tested 2928.00 through the close, perhaps inhibited ahead of post-close earnings from FB, MSFT and TSLA. Both of Wednesday’s bias-down signals held their tests to avoid triggering, putting into play offsetting tests of their bias-up signals. The morning’s 2942.00 objective remains outstanding, although the afternoon’s 2937.50 bias-up signal was already neutralized to within 3 ticks by Wednesday’s late-afternoon high.

Overnight action’s new info…
Globex immediately popped-up to 2932.50 and continued firming to attack 2936.00. An abrupt reversal retraced it all into and out of Europe’s opens. A 90-minute consolidation supported by 2928.00 got the confidence for a bounce. That has proved to be premature, as a 2-hour consolidation resisted by 2933.00 just spiked down to 2927.00 on MMM miss and lower guidance. But the spike was quickly retraced 5 points to where it greeted the news.

If, then… (notes to accompany the Tour recording)
An entire session elapsed Wednesday without immediately retracing Tuesday morning’s rally, which helps to suggest the rally will resume. It’s another version of pessimism, ineffectual pessimism, which is potentially bullish from a contrarian perspective. A deeper retracement first remains possible, still searching for strong-handed buyers — and a deeper retracement first also remains likely, however brief, unless the open has already recovered back above yesterday afternoon’s 2937.00 high. Note that overnight action has essentially been contained within yesterday’s last half-hour range, so breaking either way within 60-90 minutes of the open will likely retrace. Unfinished business at 2942.00 and 2942.75 should help to limit selling pressure, and to attract price higher.

First Trade…
[Click here to view the Bias parameters] Exiting the open at 9:45 above 2930.25 would be unlikely to trigger the 2927.75 bias-down signal at 10:15. Exiting the open under 2925.25 would be likely to trigger bias-down.