The First Trade & Pre-open Tour Recording… Probing, and possibly gapping.
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…
Thursday duplicated Wednesday’s strong intraday rally. Both gapped up, extended sharply higher into their afternoon bias environments, and then ranged sideways through the close around their next higher objectives. Thursday’s pre-open dip had touched Wednesday’s 2696.75 objective as support before rallying to its 2721.50 objective, which was tested up to 2725.00. Reacting down to 2713.00 was recovered up to 2721.50 through the cash session close. No “unfinished business above” was left outstanding.
Overnight action’s new info…
Globex was greeted back down at 2716.00 which had been the target of Thursday’s last reaction down. A gradual recovery to 2723.00 was suddenly retraced to 2716.50 before Europe’s opens (defensive posturing?) but the dip was soon recovered. And now the recovery has extended to probe yesterday’s highs attacking 2627.00.
If, then…
The similarities between Wednesday and Thursday’s consecutive rallies don’t dictate Friday’s pattern, but they do narrow down its possibilities. Thursday afternoon’s pattern does have a likely resolution, which is to gap up (i.e. to already extend the rally overnight) or at least to trend up into the open. Yesterday’s highs are finally being probed, or initially being probed — it’s still early. Another gap up? The Wednesday-Thursday similarities suggest this setup won’t extend higher, so we would expect it to reverse down. Opening flat or backing-and-filling could still resolve up, but would at least be vulnerable to reversing down.
First Trade…
[Click here to view the Bias parameters] Exiting the open at 9:45 above 2725.00 would be likely to trigger the 2722.75 bias-up signal at 10:15. Exiting the open under 2718.00 would be unlikely to trigger bias-up. Friday morning bias signals tend to persist through the noon hour.