The First Trade & Pre-open Tour Recording… Even narrower.
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…
Perhaps limiting Wednesday’s opening 6-point surge to 2826.00 was product of having originated from a position of weakness. Regardless, the consolidation resolved through the morning bias environment exit, and touched 2836.00 during the afternoon bias environment exit. More so, its 3-point reaction down held above Tuesday’s 2831.25 high to avoid reversing momentum down. The shallow pullback within upside momentum met the position-squaring window being vulnerable to a short-squeeze. Perhaps the setup would have triggered organically, but probably not by spiking up 18 points when the US-EU tariff deal was announced. Reacting down from 2849.50 got to 2840.00 before the close, which bounced 61.8% back up to 2845.50..
Overnight action’s new info…
Having been triggered by a headline, Wednesday’s late surge to 2849.50 was likely to be retraced. What the pre-close dip missed, the Globex gap down to 2835.00 nearly completed. The 2833.25 overnight low is close enough to neutralize that setup’s attraction. But we wouldn’t know it from subsequent price action — the balance of the night, the entire night actually, has ranged narrowly sideways between 2834.00-2838.50.
If, then…
The second consecutive close above 2818.00 confirms a new rally leg is underway, requiring at least an eventual third higher close. It’s next higher target 2873.00, and potentially 2909.00. Potentially. The leg’s characteristic should soon become very aggressive. But not necessarily yet, and the proximity to January’s highs could create turbulence this morning. The bullish context could have a near-term bearish influence, too, as it allows a retracement to refuel buyers, maybe no deeper than 2828.50 but with room to retest 2818.00. Trending up again Thursday afternoon could extend through Monday morning.
First Trade…
[Click here to view the Bias parameters] Exiting the open at 9:45 under 2836.25 would be likely to trigger the 2839.50 bias-down signal at 10:15. Exiting the open above 2842.00 would be unlikely to trigger bias-up.