Proven Day Trading Signals from Viditrade - 08-23-2016

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... The week began with a largely "inside day" contained within Friday's range (the lone exception being the noon hour's momentary 2183.50 high, if not counting the 2184.50 overnight high). A remarkable 6-7 intraday swings alternated between up and down, an orderly fashion usually reserved to trending action. Oversold RSIs were left outstanding at the 2175.00 late-morning low. The morning's 2185.00 bias objective was left outstanding above.. Overnight action's new info... Flat-to-higher narrow ranging drifted narrowly into and out of Europe's opens, and through Monday's 2183.50 high. Surging an hour later touched 2187.25. Its 3-point reaction down was recovered entirely, briefly extending up to 2188.00. If, then... Having gained no traction yesterday, trending this morning requires gapping open beyond yesterday's range. Overnight action indicates as much, at least at this moment. But overnight action is also hesitating upon filling the gap back up to last Monday's 2187.00 close. Yesterday's highs formed upon filling the gap back up to Friday's close, which illustrates the difficulty in testing resistance intraday. Gapping up to and through 2187.00 would be more reliable for extending higher post-open. The minimum reward would be new highs, at least momentarily. Perhaps at most momentarily, as new highs would be vulnerable to reversing back down aggressively. First Trade... [Click here to view the Bias parameters] Exiting the open at 9:45 above 2187.00 would be likely to trigger the 2185.00 bias-up signal at 10:15. Exiting the open under 2182.00 would be unlikely to trigger bias-up.

New highs fulfilled. Not yet extended. The open gapped up into last Monday's range above its 2187.00 cash session close, and extended higher to touch the 2190.00 bias-up target. A lot of time was spent probing higher to 2191.50, above last Monday's high as was required. Printing above 2190.00 at 10:15 officially renewed the bias-up signal, next targeting 2194.50. Technically, the renewed signal is not optimal, since 2190.00 had been overlapped for so long, while RSIs deteriorated. But the burden of proof is on sellers. Maintaining the gap up above all prior highs often creates an anchor that prevents launching a durable reversal. Today's anchor is less reliable since it formed within a prior session's range. Still, the burden of proof is on sellers, and reversing down under 2188.75 could recover aggressively from 2185.00-2186.00 this morning.

TUE afternoon signal (triggered at 1:20 ET) SPX ES Bias-up: above  2191.75 2189.50 ...would target  2196.50  2194.50 Bias-down: under  2185.50  2183.50 ...would target 2179.25  2177.00 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.

SPECIAL NOTE: I will be away from the screens on the afternoons of both Thursday and Friday, this week and next, Thank you for allowing me to be of personal assistance in a family matter. Despite the open having neutralized all "unfinished business above" up to 2181.50, the balance of the morning barely reacted down to 2187.50. Slow and steady drifting through the noon hour extended  to attack this morning's 2185.00 bias-down signal as support. Probing fresh highs could be done without turning aggressive, and simply drifting slowly and steadily back up. The next higher attractions at 2195.50 and 2202.50 would be in-play above 2190.25. Meanwhile, support down to 2184.00-2185.00 isn't so much an inflection point, as it is a likely spot for selling to accelerate. A credible drop will need to be aggressive if it is valid.

WED morning signal (triggered at 10:15 ET) SPX ES Bias-up: above  2191.00 2188.75 ...would target  2197.00  2195.00 Bias-down: under  2184.75  2182.75 ...would target 2179.25  2177.00 Signal status: LATE BIAS-DOWN 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.

There is no unfinished business above. Last Monday's high was barely pierced, but simply touching it would have fulfilled its required retest. Drifting lower from there throughout the day doesn't suggest the uptrend's momentum has lapsed, or that new counter-trend sponsorship has arrived. But reacting down instead of trend higher was more relevant for what it prevented. Not trending above last week's high avoided a clean breakout. Closing above the interim range doesn't qualify as a breakout, but extending higher Wednesday could marginalize sellers in the near-term. Otherwise, a top continues forming. Breaking back down without further delay would be an entirely credible start to a durable downleg. But probably only if gapping down, since sellers didn't gain traction for their efforts Tuesday. Details and other markets coverage are discussed in the post-market Wrap recording here.

Monitor overnight Globex trading in the chaRTroom here.