Day Trading Signals and Strategy - 05-23-2017

Proper context can start the day with a solid win and make all the difference.

NEW 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... Monday took three steps higher and higher, but each step was shorter and shorter. Gapping up to the overnight range's 2385.00 high immediately extended to attack 2391.00. That was retraced entirely before rallying again into the noon hour to test 2393.00. Essentially hovering at the highs was resembling a "Wile E. Coyote moment," vulnerable to collapse. Yet one more shallow correction was recovered to probe slightly higher at 2394.25 before the close. Overnight action's new info... The intraday pattern repeated with one more fresh high, the shallowest yet by only a 2-tick margin. Sadly, that resolved in the collapse described earlier, due to terrorism at a concert in Manchester. The 8-point slide to 2386.75 was consolidated into Europe's opens, which triggered a surge to fresh highs attacking 2398.00. If, then... Monday's bearish WedEX influence was limited to retracing all of the post-open gain. But quickly resuming the rally prevented forming a solid base. And now the room for extending higher up to "higher prior lows" around 2397.00 is being tested. Not extending almost immediately through 2399.00-2401.00 would be vulnerable to another complete retracement back down. First Trade... [Click here to view the Bias parameters] Exiting the open at 9:45 above 2397.00 would be likely to trigger the 2395.25 bias-up signal at 10:!5. Exiting the open under 2391.00 would be unlikely to trigger bias-up. Phonetic dictation... good morning and welcome it is Tuesday 10 / Tuesday's market tour and interesting reaction here not sadly not a great reaction here so I don't know that we can really draw the two together but the fact is that yesterday afternoon price action yesterday afternoon was I was criticizing it or characterizing it at least as the Wylie Coyote moment we had been searching for tracing and the retraced move the entire wood Trace them back to the opening print if that was it and it's through the bias environment exit if that was influenced by the bearish wed x to the degree that was influenced by the Bears win X the complete retracement back to the opening friend then that is the end of the Burruss wedding in any case because its influence begins Friday afternoon and ends after Monday morning however immediately recovering from that retraced man didn't allow any kind of a base to form so that doesn't make terribly horrible base to try extending higher but it is suspicious anyway and that suspicion is someone confirmed when surgeon to have fresh hi then runs out of its own sponsorship runs out of its own sponsorship that is more so rather than pulling back constructively just hovers again like that I kind of scene of Wylie Coyote being let off the cliff by Roadrunner hovering there in literally sustained animation momentarily and then gravity sucks and down last minute surge or piercing buy a couple points I have been a couple points or traced back into the ring and then sadly the overnight at the Ariana Grande concert terrorist attack suicide bomber drives price down 8 points from that surge Peak so price does collapse it does though by collapsing do what yesterday's new Howard Stern's didn't do in reaction and that is correct actually dig deeper into and not just tangentially barely into the retreat the mornings verus Wade extra Trey Smith so what do we or another the market does what it's supposed to do to get where it wants to go and in this case he had completed its correction Consolidated it Consolidated it through right into actually Europe's opens which triggered an extension of the rally but concerned apparently being over there more geared toward successful quelling or ending of the terrorist incident good for them so anyway what was the likelihood or potential that is what was the likely objective higher Pryor lives up here 2397 area as I said yesterday instead of just the area or at least not triggering that is to buy ass up there for putting into play if especially if tested Post open the 23 9525 bias up signals tested Post open but not triggered putting into play the oxygen test of the bias down signal message drop back to 8875 but trigger buy a sub 23 9525 will give her every benefit of the doubt to being able to at least absorb backing and filling you know yesterday morning triggered by us up and then spent the balance in the morning backing and filling didn't fulfill its bicep Target in till the afternoon so that's possible today not likely to repeat the same setup but so that's possible or actually to extend higher and buy us up as biased not limited to the bias of Target any questions let me know coming or not and it has isn't indicated at this point but if today were too close even higher then that's not it self confirmation but to take out 6150 again after it had been influential with really undermine the downside the same set up a different price points basically no higher price for silver but a close above last Wednesday's high that had formed an island that had reacted down in the formation of an island that is recovering to resume the rally remember islands are always were tested whether it's to form a more significant top or to resume the trend that led to it so either that's what is developing here that is resuming the rally or the retest Wednesday size going to hold and that'll format top kind of hesitant here at the time at this time long Bond nothing no reason why they consolidation 2 + day consolidation can't now resume the rally it's starting to get a little late little delayed in resume in the rally and crude oil which confirmed a break out yesterday I break out of this multi-session range this is July now requires there to be an eventual at least one eventual third I are close so I said over tradesmith this is where that knowledge comes in handy you know when the breakout is confirmed immediately which is what confirmation is and then immediately fulfills the eventual require third higher clothes there goes that predict ability that we can otherwise rely on but here the pattern is immediately were tracing and we know there's an eventual third are closed likely and that makes it easier to buy support like this afternoon .

Gap up reacts back down. Which reacts back up. Yesterday's rally didn't gain traction for its efforts. So, gapping up above yesterday's highs was the only way to rally credibly this morning. Gapping up, and extending. But the gap up held its test of 2397.00 "higher prior lows" and reacted down. Natural support was found upon filling the gap back to yesterday's 2392.50 close. RSIs diverged positively, producing a bounce that failed to recover the 2395.25 bias-up signal.

This is a no-bias environment. Holding a test of the bias-up signal put into play an offsetting test of the 2388.75 bias-down signal.

That objective below is became suspect when the bounce tested the 2395.25 bias-up signal. By 3 ticks. But still overlapping it at 10:30 failed to invalidate what was triggered cleanly and timely at 10:15. That said, beware of being short above 2396.00, because the bounce's rejection isn't optimal. Back under 2394.00 would signal the break lower has resumed.

TUE afternoon signal (triggered at 1:20 ET) SPX ES Bias-up: above  2401.25 2399.75 ...would target  2406.25  2405.00 Bias-down: under  2395.50  2394.25 ...would target  2390.25  2388.75 Signal status: NO-BIAS FAQ INTRO VIDEOS #1 and #2 1. At 1:20, trading above the bias-up signal or under the bias-down signal would put into play a test of its bias-up or bias-down target. 2. Not triggering either bias signal at 1:20 would be "no-bias," and the bias signals should define the bias environment's range. -- A test of the opposite bias signal would be targeted if one bias signal was tested before triggering no-bias. 3. Touching the bias signal within 3 minutes either way of 1:20 would invoke a grace period through 1:30 to trigger a late signal. -- "Late" signals don't require testing the opposite bias signal, but it's still likely. 4. Still testing the bias signal at 1:30 after invoking the grace period would trigger "noN-bias," with no bias influence.

Resistance is holding, and being retested . This morning's 2396.25 bias-up signal was being probed at 10:30, but not exceeded by enough to invalidate having signaled no-bias at 10:15. The balance of the bias environment tested 2396.25 as resistance. Never enough to by become "no-bias trending," but neither was it rejected. The offsetting test of this morning's 2388.75 bias-down signal is "unfinished business below." That didn't prevent probing fresh highs into noon. Attacking this afternoon's 2399.75 bias-up signal was reversed to attack 2395.00. This is a no-bias environment, too. Fresh highs would have room up to 2401.00, if not also to probe it, while still being vulnerable to reversing down sharply.

Tuesday's gap up touched the 2397.00 "higher prior low." Its test was likely to hold, which it did. Reversing down avoided triggering bias-up, putting into play an offsetting test of the 2388.75 bias-down signal. Which was never touched. Bias-up wasn't invalidated, although the morning was spent hovering there. So 2388.75 becomes "unfinished business below." Rallying into the noon hour to 2399.50 was never revisited intraday. Its reaction down formed a range that persisted through the close. Sellers failed through two timing windows to reverse down, suggesting the consequence of probing a fresh high. Stopping pessimistically short of the high suggests it will be probed considerably. Only gapping down or extending down aggressively can avoid at least probing fresh highs, presumably to 2401.00, if not also trending to new highs. Details and other markets coverage are discussed in the post-market Wrap recording here.

Monitor overnight Globex trading in the chaRTroom here.

WED morning signal (triggered at 10:15 ET) SPX ES Bias-up: above  2400.50 2399.00 ...would target  2406.25  2405.00 Bias-down: under  2392.25  2391.00 ...would target  2386.00  2384.50 Signal status: NO-BIAS, TESTED BIAS-UP SIGNAL FAQ INTRO VIDEOS #1 and #2 1. At 10:15, trading above the bias-up signal or under the bias-down signal would put into play a test of its bias-up or bias-down target. 2. Not triggering either bias signal at 10:15 would be "no-bias," and the bias signals should define the bias environment's range. -- A test of the opposite bias signal would be targeted if one bias signal was tested before triggering no-bias. 3. Touching the bias signal within 3 minutes either way of 10:15 would invoke a grace period through 10:30 to trigger a late signal. -- "Late" signals don't require testing the opposite bias signal, but it's still likely. 4. Still testing the bias signal at 10:30 after invoking the grace period would trigger "noN-bias," with no bias influence.