The First Trade & Pre-open Tour Recording… Staying high, and dry.
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…
Wednesday had been likely to probe above Tuesday morning’s 2650.00 high, but probably only to 2653.00. That essentially inverted when the open was greeted above 2653.00. Its reaction down to 2647.00 support recovered into a 20-point rally into the noon hour. Defensive posturing ahead of the FOMC’s policy statement had pulled back to 2655.00, better enabling the news reaction to surge 29 points to 2684.00. The Fed Chair’s Q&A extended that to attack 2690.00, which was finally enough. The final hour dipped to 2674.25 and ranged narrowly into the close, perhaps inhibited ahead of MSFT and FB post-close earnings.
Overnight action’s new info…
Similar to AAPL after Tuesday’s close, reacting favorably to MSFT and FB post-close earnings beats enabled futures to greet the Globex open testing 2683.00. Gradually improving from there back to yesterday’s highs eventually probed higher to attack 2692.00 before midnight. Flat-to-lower ranging since then has drifted back down to attack 2681.00, which the earlier Globex low had done already.
If, then… (notes to accompany the Tour recording)
CORRECTION: My early departure on Friday has been delayed by one week. This week will finish out normally… Closing above 2666.00 from under 2656.00. puts into play 2701.00 (subject to a second consecutive higher confirming close Thursday, which could already fulfill 2701.00). Or, not. Having closed above 2666.00, gapping down under 2656.00 Thursday would reject Wednesday’s upside momentum. Gapping down isn’t currently indicated, but only closing back under 2656.00 would still qualify if combined with another reversal setup — like a Globex-flip setup that would form by maintaining an open under the earlier Globex low after having probed yesterday’s highs overnight. Any downleg would be compared against the 1-1/2 week-long Ascending Triangle that tried breaking out yesterday.
First Trade…
[Click here to view the Bias parameters] Exiting the open at 9:45 above 2690.50 would be likely to trigger the 2687.00 bias-up signal at 10:15. Exiting the open under 2680.25 would be unlikely to trigger bias-up.