The First Trade & Pre-open Tour Recording… Greeting with a gap.
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…
Volatility expanded Tuesday compared to Monday. The 2639.00-2752.00 range was an outside day, that still closed within Monday’s range. And like Monday, price action was centered around 2743.00-2747.00. No “unfinished business” was left outstanding by either session. This is more than enough to qualify as a multi-session range. Another interesting feature shared by the two sessions is their opening surges, and those opening surges being reversed back under the open. Tuesday’s post-open reversal even probed Monday’s low, and still avoided melting down. Buyers gained traction for their effort, but retraced too little to indicate that sellers were done.
Overnight action’s new info…
Where Tuesday afternoon’s rally stopped short, the overnight has stepped in. Globex’s open immediately pierced the intraday high up to 2753.25. That was the afternoon’s bias-up target, and its resistance quickly reacted back down 3 points. The rally soon resumed and extended to 2758.00 before dipping 4 points through Europe’s opens. Now 2758.00 is being attacked again.
If, then…
The market is a clearinghouse of competing influences. Breakouts identify the stronger influences, validated by confirmations and invalidated by rejections. Monday-Tuesday’s multi-session range is the influence of 2743.00-2747.00‘s attraction. Surges above and below its 4-point range are the attempts to shake loose of that attraction. Tuesday’s outside day doesn’t indicate any lesser attraction, because price continually returned to the 4-point range. The attraction isn’t shrinking, but the effort to shake loose of its attraction is growing. Gapping up this morning as is currently indicated remains vulnerable to reversing back down, like Monday and Tuesday’s opening surges. But unless the open takes their reactions back into the Monday-Tuesday range — and preferably back into 2743.00-2747.00‘s range — the breakout can extend intraday to 2765.00-2766.25 — the same aggressive and substantial rally Tuesday afternoon could have produced. The bearish scenario all but requires quickly rejecting the breakout’s sponsorship before it can attract reinforcements. A breakout either way beyond the Monday-Tuesday range would still require confirmation Thursday, more so for a break higher.
First Trade…
[Click here to view the Bias parameters] Exiting the open at 9:45 Exiting the open under 2750.50 would be unlikely to trigger the 2754.75 bias-up signal at 10:15. Exiting the open above 2757.25 would be likely to trigger bias-up.