The First Trade & Pre-open Tour Recording… Firmer.
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 night’s decline already had tested the decline’s next lower target at 2654.00 by 3 points, and greeted the open there. Bouncing 7 points resolved down to test the next lower target at 2635.00 by 2 points. Both were recovered quickly by fresh session highs testing 2668.00. It was retested by 3 points after an interim dip back down to pre-open lows. A same-day test and recovery of both of the next two lower targets would have at least robbed sellers of their traction. But the afternoon’s slide back down to the morning’s lows ended back under 2654.00, while the afternoon range was still utilizing 2635.00 as support.
Overnight action’s new info…
After initially dipping to attack the late-afternoon low down to 2632.25, price has trended up relentlessly. And by double-digits. It may sound like a rejection of sellers, by strong-handed buyers, but the bounce so far may as well be noise and not necessarily due to sponsorship. Ranging sideways since Europe’s opens has fluctuated choppily around 2654.00.
If, then… (notes to accompany the Tour recording)
116 ES points, 1,100 Dow points, all from Friday’s noon hour high to Tuesday afternoon’s retest of the morning’s lows. Is it done? NDX outperformed by not retesting its morning’s lows, and having been a primary catalyst for the decline, a Tech bottom would be helpful to ending the sell-off. Thanksgiving’s seasonal bullishness could also help, and it tends to step in today. None of which matters if the normal rubber band stretch has broken the band’s elasticity altogether. The overnight bounce is only testing 2654.00 resistance, but a morning rally could test 2678.00 resistance and still maintain the decline’s momentum.
First Trade…
[Click here to view the Bias parameters] Exiting the open at 9:45 above 2654.00 would be likely to trigger the 2650.50 bias-up signal at 10:15. Exiting the open under 2648.00 would be unlikely to trigger bias-up.