The First Trade & Pre-open Tour Recording… China, for the save.
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…
Monday’s rally to test prior highs up to 2869.00 — didn’t extend Tuesday beyond Monday’s 2873.50 intraday high. The morning’s bias signal triggered a reaction down to 2862.25 that met and held its pullback objective, qualifying as backing-and-filling. The balance of the session rallied back up to 2873.50. A very last-minute reaction collapsed back under 2869.00 to 2867.00 through the futures close. The upper-end of the distributive range held, and pushed back twice, but never reversed the trend back down.
Overnight action’s new info…
Tuesday’s last-minute collapse had triggered a sell signal targeting 2866.00, which was met at the Globex open. Sideways ranging held its retest, perhaps thanks to China trade headlines that triggered a couple of surges up to 2882.25. The two surges formed complexity that creates a “new Globex trend extreme” requiring intraday retest, often the same day. A shallow consolidation back to 2878.00 recovered through Europe’s opens up to 2884.00, but only briefly as 2880.00 is being tested as support.
If, then… (notes to accompany the Tour recording)
Fresh highs were possible regardless of their resolution, even if only temporary to stretch the rubber band so it can snap back down aggressively. Whether to 2779.00 or up to 2885.50, there was no requirement to be met before reversing down, but the China trade headlines have injected an optimistic bias. Zerohedge is criticizing the mechanical reaction for ignoring the remaining disagreement on implementation and enforcement, which may be true. But if these levels don’t reinstate the two-week old distributive pattern, then not reversing down would next target 2902.00.
First Trade…
[Click here to view the Bias parameters] Exiting the open at 9:45 above 2779.00 would be likely to at least trigger the 2875.50 bias-up signal at 10:15. Exiting the open above 2885.00 would be likely also to exceed the 2882.25 bias-up target at 10:15 to renew the bias-up signal.