The First Trade & Pre-open Tour Recording… Struggling just to open flat.
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…
Initially firming into Thursday night’s Globex session was blind-sided by the first overnight drop, a 17-point plunge to 2793.50. Its recovery back into Thursday’s range up to 2806.00 was hit by a 13-point plunge to 2793.00. Its recovery into and out of Friday’s open retraced the original plunge’s 2810.50 origin. More so, its recovery maintained an open back into Thursday’s range to form an Isolation setup. The morning’s rally created room for the afternoon’s bearish WedEX to influence price back down through Friday’s close and touch Thursday morning’s 2800.25 low.
Overnight action’s new info…
Sunday night’s open blipped-up to touch 2806.00 and soon began reversing down. And down. Thursday night’s lows were pierced down to 2792.50. A chunk of the drop was a single 7-point slide, but no more plunging. And that was before midnight. Flat-to-higher ranging since then has twice tested Thursday/Friday’s “higher prior lows” at 2800.25.
If, then…
So much for Sunday night strength. Honoring the Isolation setup is difficult if this morning were to probe under Thursday’s 2800.00-2802.00 lows. And that’s going to be difficult to avoid if this morning were to honor the bearish WedEX influence, starting at Thursday’s 2800.00-2802.00 lows. Anything can happen before the open, but not much is expected. Overnight price action off of the lows may be forming an Ascending Triangle, whose break would target 2805.00 and 2813.00, which would be plenty of room for the morning’s bearish WedEX influence to develop — given enough time for the Triangle pattern’s overnight influence to develop pre-open, or into the opening 15 minutes of volatility. And given that the Triangle actually breaks higher. The pattern’s uptrending support is being tested now, and back under its 2795.00 connector would start to signal the Triangle is breaking lower, not higher, targeting 2791.25 and potentially 2781.00 down to 2775.00. Remember, both the Isolation and WedEX setup could be simultaneously influential if Monday morning were only to range narrowly sideways above 2800.00-2802.00. That’s no fun.
First Trade…
[Click here to view the Bias parameters] Exiting the open at 9:45 above 2803.00 would be unlikely to trigger the 2798.00 bias-down signal at 10:15. Exiting the open under 2795.00 would be likely to trigger bias-up.