The First Trade & Pre-open Tour Recording… Hovering at the highs.
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…
Target-to-target; we don’t see these sessions often. Monday night’s drop to test 2790.00 was essentially the morning’s bias-down target. Its reaction into and out of the open avoided triggering the bias-down signal, putting into play an offsetting test of its bias-up signal. The morning’s momentum persisted through the noon hour to trigger the afternoon’s bias-up signal, whose 2816.75 target was fulfilled to within 4 ticks at session highs. That also represented the room for noise above the rally’s 2813.00 objective. The close was back under it, but still above the 2809.00 objective whose Sunday night test had held.
Overnight action’s new info…
Closing back under the intraday test of 2813.00-2816.75 robs the rally of its momentum, but doesn’t reverse it which had required closing under 2809.00. This is now exemplified by the overnight sideways range. Attacking 2810.00 into Tuesday’s close was soon recovered to pierce fresh highs to within 1 tick of 2816.75. Gradually reacting down since then has again attacked 2810.00. .
If, then…
Having lost its momentum, resuming the rally Wednesday morning all but requires gapping up. Not gapping up doesn’t necessarily default to reversing down. But reversing down is likelier if not gapping up, and makes intraday rally efforts likely to fail. Meanwhile, this is day-two of the Fed Chair’s congressional testimony. It rarely duplicates day-one. Price action already discounts comments as if they’ll be repeated the second day. Often, the Fed Chair walks-back various comments that were misinterpreted or overly discounted. All of which will make for an interesting WedEX reading at the close.
First Trade…
[Click here to view the Bias parameters] Exiting the open at 9:45 above 2818.00 would be likely to trigger the 2816.00 bias-up signal at 10:15. Exiting the open under 2813.00 would be unlikely to trigger bias-up. Exiting the open above 2810.00 would be unlikely to trigger the 2807.75 bias-down signal.