The First Trade & Pre-open Tour Recording… Heating back up already. And back down, too.
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 night’s rally and Tuesday’s opening surge to 2835.00 created room for the balance of the session to expend selling pressure without yet resuming the decline. The session high was a 61.8% retracement back to Thursday’s 2863.00 high from Monday afternoon’s 2789.50 low, which is natural resistance. Trending back down through the afternoon bias environment fell to 2808.50. Which is a lot of selling pressure to have expended until so late in the day, without yet probing back into negative territory. That’s usually too late to suddenly turn negative. And as expected, the last 60-90 minutes bounced back up. The close was unchanged from the 2823.00 open, a setup that reflects equilibrium.
Overnight action’s new info…
Today’s volatility should be healthy if anything like the two significant overnight moves that developed already. After an initial dip from Tuesday’s close touched 2818.00, yesterday’s late bounce resumed. It extended back up through into Europe’s opens to attack 2832.00. A 7-point reaction down tried to recover, but that collapsed down to 2817.00. Positively diverging RSIs at the 2817.50 bias-down signal slowed the drop, but only briefly as the decline is resuming to touch 2814.50.
If, then… (notes to accompany the Tour recording)
Had it been maintained, the earlier overnight rally would have been on-track for extending to 2846.00 and possibly 2852.00. But its complete reversal back down into negative territory suggests that yesterday’s correction day has ended. Resuming the decline would structurally target fresh lows under 2790.00, and calculably target 2770.00 in an aggressive manner if last week’s distribution is advancing to the next stage.
First Trade…
[Click here to view the Bias parameters] Exiting the open at 9:45 above 2819.50 would be unlikely to trigger the 2817.50 bias-down signal. Exiting the open under 2813.00 would be likely to trigger bias-down.