The First Trade & Pre-open Tour Recording… Isolation setup, 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 was book-ended by trade war news. Sunday afternoon headlines triggered a gap down that hovered 2904.00 overnight. Testing and attacking Friday’s 2911.25 fresh high close before and after Monday’s open found plenty of sellers post-open. The morning bias-down signaled and its target was met, as were the afternoon bias parameters when more headlines announced that tariffs would be announced post-close. The optimal 2897.00 pullback limit was probed by 4-5 points, and then recovered 1 minute after the close, too late to be bullish.

Overnight action’s new info…
Another trade war headline onslaught, and another brief effect. The forewarned tariff headlines were greeted at 2893.50, which is Tuesday morning’s bias-down signal. The first reaction collapsed down to 2887.50, which is Tuesday morning’s bias-down target. Another dip extended down to 2883.50, where a rally began, recovering to 2893.50 by midnight. The rally resumed and recovered to greet Europe’s opens in positive territory, absorbing a brief dip before extending higher to touch 2903.00.

If, then… (notes to accompany the Tour recording)
Before yesterday’s close, Monday’s pullback would have ended as a very natural pullback by holding the test of 2897.00‘s “lower prior highs.” After yesterday’s close failed that, reinstating upside momentum could be done by proxy at the following open. But being one timing window later would require opening above the next prior high, which is 2903.00. That’s where the open is currently indicated. More so, another potentially bullish setup has developed after probing under Monday’s low, which is to isolate its probe to the overnight by opening back up within Monday’s range — and not probing back under it intraday. Avoiding either setup to instead open under yesterday’s low could still complete the pullback by holding a test of 2887.00-2888.00. But any deeper of a pullback would be bearish, while fully forming at least one setup without also triggering it would be as bearish as it would have been bullish.

First Trade…
[Click here to view the Bias parameters] Exiting the open at 9:45 above 2903.50 would be likely to trigger the 2901.50 bias-up signal at 10:15. Exiting the open under 2897.00 would be unlikely to trigger bias-up.