Proven Day Trading Signals from Viditrade - 05-10-2016

fProper 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... Sunday night's test of 2059.50 resistance was reversed down to 2049.00 into Monday's open. That range essentially defined the session. A quick surge attacked 2059.00 before reversing almost as quickly to 2048.50. Recovering the opening surge reversed down again, ending the day unchanged at 2054.00. Buyers gained no traction, and three opportunities failed to launch a rally. Meanwhile, sellers also failed to exploit even greater opportunities to resume the ongoing decline. Overnight action's new info... Monday's session had ended by reacting down from attacking 2059.00. The Globex open immediately resumed the reaction, plunging to 2048.00 and retesting Monday's pre-open and intraday lows. Identical to those earlier drops, price both reversed up abruptly, and also extended to attack 2059.00. But this time was different. Europe's opens followed a pop-up to 2062.50, and then soon followed by a bigger surge to 2068.00. Eventually touching 2069.25 has reacted down, gradually back to 2064.00 and now aggressively to attack 2060.00. If, then... Monday's bias environment exit was borderline for gaining traction, no matter how decisively the final hour was entered. We knew at yesterday's close that resuming the rally this morning would require gapping up. And we suspected that would happen since sellers had failed to exploit intraday vulnerabilities. Gapping up must be maintained and preferably also extended to prevent reversing back down post-open -- especially having met 2068.00 resistance after ending yesterday's session unchanged. First Trade... Exiting the open at 9:45 above 2066.00 would be likely to exceed the 2063.25 bias-up target at 10:15 and renew the bias-up signal. Exiting the open above 2061.00 would be likely to trigger the 2057.75 bias-up signal. Exiting the open under 2054.25 would be unlikely to trigger bias-up.

Post-open action trends up. Gapping up to 2062.25 quickly extended to 2065.50 and threatened to be too optimistic to be maintained. But an equally quick reaction down to 2062.25 corrected at least 61.8{faed0d6dca04cec8b6b7985efddb9b0651107a3aebb05f69f0166038b8c951f6} of the open's surge.

That hesitation was critical according to my description during the pre-market Tour. Probing fresh highs as the opening 15 minutes of volatility were lapsing was extended back to the 2069.25 overnight high. Reacting down to 2065.50 has been retraced back to the high.

Exceeding the 2063.25 bias-up target through 10:15 has renewed the bias-up signal. Its 2068.00 renewed bias-up target is met already, and not exceeded in time to doubly renew the bias-up signal. Despite not doubly renewing the bias-up, extending higher would next target 2071.00-2072.00. Back under 2066.50 would target 2063.75. Extending higher gets a benefit of the doubt, and the consequence to reversing down is no longer as bearish. But this afternoon's action should extend the rally if a reversal is going to be avoided.

TUE afternoon signal (triggered at 1:20 ET) SPX ES Bias-up: above  2078.00 2072.75 ...would target  2082.50  2077.50 Bias-down: under  2073.50  2068.50 ...would target 2069.00  2063.75 Signal status: noN-BIAS, TESTED BIAS-UP SIGNAL 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.

Extending higher, but there might be a problem. This morning's rally extended to fulfill its next higher objective at  2071.00-2072.00 up to 2072.75. A shallow correction down to 2069.25 resolved up to fresh highs. The afternoon's 2072.25 bias-up signal was still being overlapped at both 1:20 and 1:30 to trigger noN-bias. Fresh highs are attacking 2076.00. The 2077.50 bias-up target doesn't require being met, but it can be, and the next higher objective is 2080.50. One thing I had not considered previously was a "session-long rally" setup. The setup triggers in rejection of the prior day's closing dip, by gapping up above that prior afternoon's bias environment high.

Yesterday afternoon's high printed AFTER the bias environment began lapsing, but before the final hour's entry. So, the setup isn't optimal. But I'm wondering, since almost every timing window would probe the prior timing window's high. And every timing window HAS probed the prior timing window's high.

Usually, the noon hour fails to probe higher. But not today -- now only the final 60-90 minutes could be the setup's exception, and not probe higher. It wouldn't necessarily reverse down, but the shallow late-morning pullback has me a little concerned. Especially if the bias environment were exited back under this morning's 2072.75 high, be on guard for a reversal down.

This will sound incorrect: Tuesday probably was not a "session-long rally" setup, because each timing window probed a fresh high. A session-long rally setup usually has one timing window not probe higher. Each of Tuesday's timing windows probed a fresh high. So, what? Well, had Tuesday been a session-long rally, then we could rely on the rally extending higher Wednesday morning. That's not assured. It's likely anyway -- the rally gained traction for its effort (by exiting the bias environment above the noon hour's high, and then trending to fresh highs through 3:10-3:20) so Wednesday morning is likely to trend up. But that could begin from a gap down. And a gap down can't be discounted, for at least three reasons. The 2080.50 objective was met to within 3 ticks, while RSIs diverged negatively. Confirming Tuesday's rally by extending higher Wednesday would put into play new highs above 2105.00. Early weakness has room down to 2072.00 without yet reversing the trend back down. 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 2086.25 2080.50 ...would target  2093.00  2087.50 Bias-down: under  2078.50 2073.00 ...would target 2073.25  2067.50 Signal status: LATE NO-BIAS, TESTED BIAS-DOWN 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.