Proven Day Trading Signals from Viditrade - 04-18-2016

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

CHARTROOM LINK (pre-open Market Tour begins at 8:55 ET)

Through the prior close... Friday's expiration session developed almost entirely in negative territory, resisted by Thursday's 2076.00 close. Fresh lows down to 2069.50 during the afternoon bias environment were recovered just enough just in time to avoid gaining traction, firming further to close at 2075.00. Unfinished business below was left outstanding at 2067.50. Overnight action's new info... Sunday night's open gapped down 10-11 points to 2064.00 while Crude Oil gapped down almost $2 on no agreement by OPEC members to cut output. Crude's loss extended to almost $3 as 2058.50 was touched. Reacting up into and out of Europe's opens twice tested this morning's 2071.75 bias-down signal as resistance, reaching 2072.75. Both tests reacted back down under Friday's 2069.50 afternoon bias environment lows to test 2068.00 as support, which is being retested again now. Crude remains well under Friday's lows. If, then... Unfinished business at 2067.50 was fulfilled overnight, while testing its next lower objective at 2059.50. The reaction up to 2070.00 was impressive, but also premature. The bullish WedEX should dispense similarly with the cash session gapping down. In any case, the bullish WedEX should soon resolve any open by rallying through the morning. But a bullish WedEX may be difficult if opening action must absorb selling by overnight buyers getting flat. Regardless, I'll be monitoring for rallying back into positive territory, and then extending higher while Crude Oil does not, for early signs of a multi-session rally that breaks free from its Crude Oil correlation. First Trade... Exiting the open at 9:45 under 2068.25 would be likely to trigger the 2071.75 bias-down signal at 10:15. Exiting the open above 2073.25 would be unlikely to trigger bias-down.

Post-open action wastes little time before surging. And surging. The bullish WedEX's influence Friday afternoon was modest. It reversed a probe of fresh lows to recover at fresh afternoon highs. And having been modestly influential Friday afternoon, its influence this morning was likely to be aggressive. In fact, the 2066.75 opening print reacted down only 6 ticks during the next minute, before reversing up sharply. The 2071.75 bias-up signal was being tested by 9:45. Surging into and out of 10:00 had extended to 2079.00. That has extended to 2081.25. Regardless of its starting point being a gap down, 14 points in a half-hour is aggressive and bullish. But it's not yet morning-long, which is still under WedEX's influence.

Meanwhile, a new challenge has appeared. The open tested the 2067.50 bias-down target and recovered the 2071.75 bias-down signal. Just holding the bias signal's test through 10:15 would put into play an offsetting test of the other bias signal. Recovering a bias signal and its target, would put into play tests of both of the other bias parameters.

But the consequences for ineffectual pessimism are neutralized already. Testing this morning's 2078.50 bias-up signal is now the focus. And at 10:15 it was still being overlapped to invoke the grace period.

So, the 2085.75 bias-up target is in-play because the 2078.50 bias-up signal was recovered through 10:30. Its test at least attack is likely anyway, with influence from the bullish WedEX. Only dipping back under 2076.25 would raise any suspicion otherwise.

MON afternoon signal (triggered at 1:20 ET) SPX ES Bias-up: above  2091.25 2085.00 ...would target  2097.00  2090.75 Bias-down: under  2083.25  2076.00 ...would target 2077.25  2071.00 Signal status: waiting for trigger 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.

WedEX is done, no matter how aggressive its product. The bullish WedEX's influence on this morning is obvious. Recovering from a deep gap down is irrelevant. But rallying 18 points from 2066.00-2084.00 still doesn't reflect the rally's strength. Its buy signal at 2068.25 didn't violate a pullback limit before touching 2087.00 during the noon hour. Pullback limits were tested, but never probed deeper than their first 3 minutes. Even the mid-morning Symmetrical Triangle that broke falsely down was still so shallow that its pullback limit held before reversing back up more substantially.

The bullish WedEX's influence is done. It would have no predictive value by having been any more or less aggressive and productive. But the morning's singular sponsorship is very revealing. It suggests that reacting down would be only temporary, and recovered by a new upleg with greater measurements than this morning's upleg.

One caveat is that this morning's rally must not be rejected by the close. Probing above Thursday's 2079.75-2081.75 highs must hold as support. Closing in negative territory back under 2073.50-2074.75 would reverse momentum down. Overbought RSIs at the noon hour's high don't require a retest, but that does make reversing down more difficult.

The sum of Monday's rally was more substantial than its parts, and it contained some very substantial parts: Reacting up from the overnight low's test of 2059.50, reacting up quickly from the open's test of 2067.50, entering the morning's bias environment back in positive territory and soon following that with a probe above last week's 2081.75 high... And that was just by mid-morning. The afternoon attacked 2089.00. But upside momentum may not escape near-term jeopardy -- although buyers gained no traction for their efforts, that didn't prevent eking out fresh highs into the close. Extending the rally higher without delay requires gapping up, or else a pullback to "lower prior highs" at 2076.00-2077.00 would be likely. Any deeper of a pullback would make near-term recovery difficult, especially if not launched by gapping down. The most bearish scenario would try probing higher Tuesday morning, anyway, without gapping up from new sponsorship, and without buyers already gaining traction. Details and other markets coverage are discussed in the post-market Wrap recording here.

Monitor overnight Globex trading in the chaRTroom here.

TUE morning signal (triggered at 10:15 ET) SPX ES Bias-up: above 2094.50 2088.25 ...would target  2100.00  2093.75 Bias-down: under  2088.75 2082.50 ...would target  2083.25 2077.00 Signal status: BIAS-UP, BIAS-UP TARGET EXCEEDED 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.