The First Trade & Pre-open Tour Recording… Sentiment extremely positive, WedEX extremely bearish.
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 night’s 7-point rally had reversed down 14 points overnight to 2727.00. Friday’s expiration session started off choppily in negative territory, and soon extended the overnight dip by another 4 points to 2709.00. That was only temporary as the balance of the session ranged between the 2712.00 pre-open low, and unchanged at 2720.00. This otherwise sideways range was also defined by lower highs, and ended at its lower-end, barely fulfilling the afternoon’s bearish WedEX influence.
Overnight action’s new info…
The new week begins with a relief rally. Or, more precisely, a relief gap up. Treasury Secretary Mnuchin had commented about backing off of the trade war with China, and Giuliani speculated about soon ending the Mueller probe of Trump. Sunday night’s open gapped up sharply and extended to a 21-point gain from Friday’s close to touch 2736.25. Price quickly settled back down to range narrowly at 2730.00. The calm was interrupted by sliding for an hour to greet Europe’s opens at 2724.00. The defensive posturing has been retraced back up to 2730.00, but no higher.
If, then…
Having complied in at least a minimal sense with the bearish WedEX Friday afternoon, a more obvious post-open bearish influence is likely Monday morning. This is regardless of the opening print, which is indicated to gap up. The overnight high isn’t a “new Globex trend extreme” that would require intraday retest. Except for the opening 15 minutes of volatility’s potential for volatility, the balance of the morning should trend down. WedEX’s influence is limited to the morning. Assuming the bearish influence succeeds, then the afternoon could recover entirely — similar setups have done exactly that. But the current Dow outperformance and underperforming NDX make further downside likelier into the close. That’s a lot of bearish influence. So, avoiding a bearish influence altogether this morning should prove very bullish instead.
First Trade…
[Click here to view the Bias parameters] Exiting the open at 9:45 above 2725.25 would be likely at least to trigger the 2719.00 bias-up signal at 10:15. Exiting the open above 2730.75 would be likely to exceed the bias-up target through 10:15 to renew the bias-up signal.