The First Trade & Pre-open Tour Recording… Overnight jump.
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…
Probing overnight under Monday’s 2662.50 low by 4 points was largely repeated through Tuesday’s open. But Monday afternoon’s slide didn’t resume, and bias down didn’t trigger. Wash, rinse, repeat. The morning’s bounce up to 2674.25 was retraced to fresh lows during the noon hour. But the afternoon’s bias-down signal didn’t trigger, either. Wash, rinse, repeat, again. A shallower bounce to 2669.50 was reversed to session lows at 2652.25, and — in-line with the session’s tradition — also bounced. Monday’s 2670.00 close was being tested at the close to essentially finish the session unchanged.
Overnight action’s new info…
Tuesday’s last bounce was extended into Globex to probe 3 points above Monday’s 2670.00 close. Its reaction down to 2666.50 was narrowly consolidated, and almost entirely recovered to test 2672.00. A 3-point dip ahead of Europe’s opens (defensive posturing) was recovered back up to and through the earlier high — first a little, and then a lot, extending to 2684.50. Its reaction is now testing 2681.00 as support.
If, then…
Recovering from several intraday dips can form accumulation. That’s the basis for a bottom, but the setup isn’t complete until triggered. Tuesday’s recoveries stopped short of producing a trigger, including the close which was not above a prior high or resistance. But gapping up Wednesday can serve as a proxy for that role. Meanwhile, even the most bearish scenario did not preclude retesting Monday’s highs up to 2684.25. Now Wednesday’s open is indicated to gap up Having tested 2684.25 overnight, holding its retest through the open could launch a reversal down. Tuesday’s accumulative behavior can be more bullish only by attracting reinforcements, which is difficult when gapping up to resistance. Extending higher through the open would suggest that reinforcements had arrived, introducing potential to 2696.75.
First Trade…
[Click here to view the Bias parameters] Exiting the open at 9:45 above 2684.25 would be likely also to exceed the 2681.00 bias-up target at 10:15 to renew the bias-up signal next targeting 2693.00. Exiting the open above 2677.00 would at least be likely to trigger the 2674.00 bias-up signal at 10:15.