The First Trade & Pre-open Tour Recording… Rally, or else.
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…
Yesterday was choppy and busy, but is essentially defined by 2-3 bigger surges and their retracements. Sunday night’s gap up from Friday’s 2712.00 close extended up to 2736.25. That was a sentiment extreme and spent the balance of the night retracing down to 2724.50. Monday’s opening surge retested it, and then probed it by 3 points up to 2737.25. The balance of the morning was spent retracing that to within 3 ticks of the overnight low at 2725.25. An afternoon bounce recovered only to the overnight high before ranging sideways into the 2733.00 close. The close was still overlapping the upper-end of last Monday’s 2725.00-2732.00 consolidation.
Overnight action’s new info…
An initial calm soon began firming, and then rallying, and eventually extended back up to within 1 tick of yesterday’s 2739.25 high. Not being intraday, that isn’t considered as stopping pessimistically short, but it is a retest. And it’s interesting that there was no defensive posturing ahead of Europe’s opens, which is optimism.
If, then…
Testing the lower-end of last Monday’s 2725.00-2732.00 consolidation last week had reacted down several times, sometimes considerably. Closing decisively above the consolidation’s upper-end would have signaled a new upleg underway. Since still overlapping 2732.00 at yesterday’s close hasn’t reversed down overnight, quickly attracting reinforcements could still extend a breakout up to 2751.00 before failing. Quickly attracting reinforcements, or not, could dictate the balance of the session — especially after a single-minded overnight rally, which is inherently vulnerable to reversing at the open.
First Trade…
[Click here to view the Bias parameters] Exiting the open at 9:45 above 2737.50 would be likely to trigger the 2735.25 bias-up signal at 10:15. Exiting the open above 2743.00 would be likely also to exceed the 2741.50 bias-up target at 10:15 to renew the bias-up signal.