The First Trade & Pre-open Tour Recording… Jump ball.
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’s 2725.75 open only overlapped Monday afternoon’s 2725.00 high. Gapping up higher or extending could have invalidated the traction not gained by Monday afternoon’s buyers. So, Tuesday morning ranged very choppily between 2718.00-2728.00, holding the morning’s 2728.25 bias-up target. Extending the rally through the noon hour came within 1 tick of its 2735.50 bias-up target. It also held, like the morning’s target. The balance of the session drifted back down to 2723.25, absorbing a 5-1/2 point headline bounce. And the session went out overlapping its prior high from Monday afternoon, again gaining no traction for its efforts, and leaving no unfinished business outstanding.
Overnight action’s new info…
Globex initially bounced up to 2732.50, 3 points short of Tuesday afternoon’s high. Consolidating back down to 2724.50 got in a 5-point bounce to test this morning’s 2729.00 bias-up signal before sliding into and out of Europe’s opens. A lot. Ultimately reaching 2705.50, a 16-point bounce has has retraced 61.8% of the overnight drop from testing 2729.00. That is probing slightly back above yesterday morning’s lows and almost attacking this morning’s 2722.50 bias-down signal as resistance.
If, then…
The overnight low attacks Monday’s lows. The overnight dip avoided touching Monday morning’s 2703.75 pivotal low, which avoids requiring a retest of Monday afternoon’s 2700.50 actual low. I would expect a second bite at that apple to succeed at creating the new attraction below. Otherwise, isolating the probe under yesterday’s lows to the overnight — i.e. not only triggering no-bias above 2722.50, but avoiding 2717.50 post-open — would target a retest of yesterday’s high. Triggering bias-down would resume Monday’s break and the attraction to 4-week old lows, where the trend reverses down.
First Trade…
[Click here to view the Bias parameters] Exiting the open at 9:45 above 2725.00 would be unlikely to trigger the 2722.50 bias-down signal at 10:15. Exiting the open under 2718.25 would be likely to trigger bias-down.