The First Trade & Pre-open Tour Recording… Paradigm shift.

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 open was barely greeted with a pulse. But it wasn’t greeted in decline so a pullback wasn’t likely. That didn’t automatically default to resuming the rally. Neither of the two consecutive closes above 2701.00 securing the rally’s next higher objective at 2756.00 was impressive. Even less impressive was narrow ranging since Thursday afternoon, and now greeting Monday’s open unchanged at Friday’s 2704.50 close. So, our strategy was to consider fading tests of either end of the range, which prepared us for buying into the open’s dip to 2697.00 that held the bias-down signal. Reversing up to the morning’s 2710.25 bias-up signal extended to trigger and then fulfill the afternoon’s bias-up target and Friday’s “unfinished business” at 2719.00-2719.50. A late break higher touched 2725.00 into and out of GOOG’s post-close earnings.

Overnight action’s new info…
We have new behavior from the overnight. If follows GOOG’s earning reaction having surged $30, and then collapsing $60 back into negative territory. The Globex open soon retraced its late surge from 2725.00 down to 2716.25 before midnight. Narrow sideways ranging again developed, similarly to the prior two nights. But very soon after Europe’s opens a 10-1/2 point rally began to 2728.25. Its probe above yesterday’s highs developed complexity to qualify as a “new Globex trend extreme” before reacting down to 2725.00.

If, then… (notes to accompany the Tour recording)
Nothing requires extending higher uninterrupted. Yesterday’s rally created more room to expend and absorb selling pressure while maintaining momentum to the 2756.00 target in-play. Last night’s “new Globex trend extreme” requires an intraday retest, which helps to ensure a reaction down will recovery. Monday’s open opted not to exploit its vulnerability to a deeper pullback, and so might this morning. Attempting to extend the rally post-open and only retesting the overnight high could probe back under the overnight lows.

First Trade…
[Click here to view the Bias parameters] Exiting the open at 9:45 above 2723.75 would be likely to trigger the 2722.00 bias-up signal at 10:15. Exiting the open under 2717.50 would be unlikely to trigger bias-up.