The First Trade & Pre-open Tour Recording… Not for lack of trying.

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’s opening retest of 2767.00 had put into play an eventual test of 2756.00. Rallying Monday didn’t prevent trending down overnight (on US-China tariff war escalating) to probe 20 points under 2756.00. Rallying pre-open didn’t extend much higher for long post-open. But the session ultimately recovered to test 2767.00 by 2 points. Closing above 2756.00 indicated that sellers gained no traction for their efforts. Closing above 2767.00 would have indicated buyers gained traction for theirs. The close wasn’t decisively above 2767.00, but it was still impressive.

Overnight action’s new info…
Choppiness well before midnight had already rivaled the intraday action. Rallying from the overnight low has rivaled Tuesday’s intraday action, too. First, a 4-point dip to this morning’s 2763.00 bias-down signal reacted up to fresh highs at 2769.00, then collapsed to within 2 ticks of this morning’s 2756.75 bias-down target. Its quick recovery up to 2767.00 was retraced once more down to 2763.00, but recovered again. That was the end of that, as the market surged up to 2775.00. But fluctuating around this morning’s 2773.50 bias-up signal into and out of Europe’s opens, and gradually firming another point, is now reacting down to 2770.50.

If, then…
The market has an interesting property when closing at support or resistance: immediately extending the trend requires gapping. So, we discussed at yesterday’s closing test of 2767.00 that rallying at all this morning would require gapping up. And preferably gapping up above 2773.50, which is also this morning’s bias-up signal. Now its overnight test positions the open for that gap up, which can easily extend to fill Monday and Friday’s 2778.00 and 2785.00 gaps. Or more, with the next gap outstanding at 2788.00 and “unfinished business above” 8-10 points higher, although two gap fills in a single session tend to be a session extreme. But the upside all depends upon at least triggering the 2773.50 bias-up signal, preferably maintaining a gap up and extending it. Holding its test and reversing down may not resume the decline, but overnight lows could be retested.

First Trade…
[Click here to view the Bias parameters] Exiting the open at 9:45 under 2770.25 would be unlikely to trigger the 2773.50 bias-up signal at 10:15. Exiting the open above 2777.00 would be likely to trigger bias-up.