Reliable Day Trading Signals from Viditrade - 03-16-2017

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... The optimism inherent in Wednesday's gap up was nevertheless restrained, peaking a couple of points under the 2370.25 overnight high. Gradually extending higher anyway had probed fresh highs up to 2374.50 during the noon hour. A pullback greeted the FOMC policy statement, which triggered a surge up to 2381.00. Yellen's Q&A accompanied another pullback's recovery to fresh highs attacking 2388.00. Overbought RSIs were left outstanding there ahead of a 10-point pullback into the close. Overnight action's new info... The pullback into Wednesday's close had targeted at least 2378.25. Just touching it at the Globex open was sufficient to reverse momentum back up. Europe's opens were greeted back at 2385.50, on the way to fresh highs attacking 2389.00. The reaction down is so far holding a test of 2385.50 as support. If, then... Yesterday's surge proves last week's drop wasn't going to break under "lower prior highs." That was expected. But the past week's bounce has yet to prove it can probe new highs up to 2401.00 or 2415.00. That's also expected, but not required. Overbought RSIs at yesterday's high is now neutralized, and substantial resistance at 2388.75-2390.25 has yet to break higher. Meanwhile, there is an immediate risk at the open for reversing a one-direction relentless overnight rally. I'll be watching for any early reversal signals, and won't necessarily be long in their absence. First Trade... [Click here to view the Bias parameters] Exiting the open at 9:45 above 2386.25 would be likely to trigger the 2384.00 bias-up signal at 10:15. Exiting the open under 2380.50 would be unlikely to trigger bias-up.

Post-open dip suggesting it's a correction. Pulling back from the 2388.75 overnight high greeted the open at the 2384.00 bias-up signal. The first half-hour ranged there, and down to 2382.00. Then it broke lower. The 2377.75 overnight high was touched. Its reaction up seems obligatory, and temporary. Anyway, failing to trigger the 2384.00 bias-up signal has put into play an offsetting test of the 2376.00 bias-down signal. Having probed already under the pre-10:15 low, 2376.00 will become "unfinished business below" if not met this morning. Its test need not define the pullback, especially with a bullish WedEX likely to rescue even a deeper drop. The open's persistent overlap created congestion that is likely to be retested, regardless of that test's resolution. Recovering 2385.25 would leave unfinished business below, but could still probe fresh highs first. But the near-term trend has otherwise reversed back down.

THU afternoon signal (triggered at 1:20 ET) SPX ES Bias-up: above 2385.75  2382.00 ...would target  2390.50  2387.00 Bias-down: under 2378.25 2374.75 ...would target  2373.50  2369.75 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.

Is the pullback already done? A test of this morning's 2376.00 was put into play by holding a test of the 2384.00 bias-up signal. It was soon fulfilled, and then probed down to 2373.75 as the bias environment began lapsing. But 2376.00 was recovered as the bias environment was fully exited into the noon hour. Failing its timely recovery would have extended the drop. A usual objective is back to the origin of any FOMC reaction. That would be 2370.50. And any sell signal would put it  back into play. The noon hour's bounce to 2380.00 has reacted down to attack 2376.00. This is a no-bias environment with no attraction, but trending would be credible when it starts lapsing. Back under 2376.00 or above 2378.75 would be credible for extending in that direction.

Thursday's gap up opened at the 2384.00 bias-up signal, and quickly slid down to its 2376.00 bias-down signal. Probing under it in the morning only briefly pierced 2374.00. Probing under it in the afternoon only briefly pierced 2374.00, too. The interim bounce held 2380.00. Trading out the day range-bound was the session's least likely scenario. It creates pent-up pressure that is likely to be released by gapping open Friday. Meanwhile, an overnight dip could neutralize the attraction back down to 2370.50 where Wednesday's FOMC news was greeted, and recover in time to gap up Friday. But probing higher overnight would more likely maintain a gap up and extend higher into the weekend. Details and other markets coverage are discussed in the post-market Wrap recording here.

Monitor overnight Globex trading in the chaRTroom here.

FRI morning signal (triggered at 10:15 ET) SPX ES Bias-up: above  2388.25 2384.75 ...would target  2393.75  2390.25 Bias-down: under  2378.75  2375.25 ...would target 2373.25  2369.75 Signal status: NO-BIAS 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.