The First Trade & Pre-open Tour Recording… The rubber band is stretched.
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…
Tuesday’s session included several overtly optimistic characteristics, different from Monday’s, but keeping alive the contrarian bearishness. Tuesday’s gap up was extended to 2574.00 before reversing back down into Monday’s close at 2555.00. Another bounce attacking the high was also retraced fully. That reaction extended back down to Monday’s 2532.00 low entering the final hour. Quickly bouncing 30 points was nevertheless retraced through the close, its catalyst being a warning from FDX, finally fulfilling the decline’s 2530.00 target.
Overnight action’s new info…
The Globex open immediately began reversing the late plunge to 2530.00. The retracement had reached 2555.00 by midnight. Ranging narrowly sideways through Europe’s opens continued holding the range’s 2552.00 lower-end. The recovery eventually resumed to now attack yesterday’s late surge peak to within 1 point at 2561.50.
If, then… (notes to accompany the Tour recording)
The decline’s 2530.00 target was actually met after the close. Its test was likely to be done on the way down to 2500.00, which is still likely. But now the door to a detour has opened. Tuesday’s late surge could have triggered a detour by maintaining its probe above 2555.00. Gapping up and extending Wednesday above 2564.50 could still qualify by proxy. Otherwise, almost any post-open dip back into the 2530.00-2538.00 range will mean the stretched rubber band is snapping back down, and likely to probe its lower-end and then extend the decline — vulnerable to accelerating.
First Trade…
[Click here to view the Bias parameters] Exiting the open at 9:45 above 2562.50 would likely also exceed the 2564.50 bias-up target at 10:15 to renew the bias-up signal. Exiting the open under 2555.00 would be unlikely to trigger the 2557.50 bias-up signal at 10:15.