Reliable Day Trading Signals from Viditrade - 11-21-2016

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 open had recovered from an overnight drop to 2176.50. The 2185.50 opening print was up 6 ticks, but it didn't hold after blipping-up to 2187.50. Reversing down sharply attacked the overnight low to within 1 point at 2177.50. The balance of the session ranged sideways, resisted up to 2182.75. The bearish WedEX's influence was minor, if any, but not contradicted or invalidated Overnight action's new info... Gradual firming was soon hovering back in the 2185.00-2186.00 zone until Europe's opens. A mini-plunge down to 2179.25 was recovered as quickly, and more so, piercing a fresh high at 2186.00. If, then... The bearish WedEX setup influence should send price trending down post-open, regardless of the opening print, and whether or not the slope is steep. The slope should be steeper than shallow, since Friday's influence was nominal. And the opening print should still be within the current range. So, we'll consider the WedEX influence moot only after gapping up above 2185.00-2186.00, or if not reversed down fast. Meanwhile, we're also sensitive to the ongoing rally injecting a pullback to at least 2162.00, before that opportunity is inhibited by Thanksgiving's seasonal bullishness. But the pullback potential could become a multi-session short-squeeze on the way up to 2220.00 if gapping up above 2185.00-2186.00 were maintained through the open and extended above 2192.00. First Trade... [Click here to view the Bias parameters] Exiting the open at 9:45 above 2186.25 would be likely to trigger the 2185.00 bias-up signal at 10:15. Exiting the open under 2180.75 would be unlikely to trigger bias-up.

Probing fresh highs, albeit only temporarily. The 2186.50 open was under Friday's 2187.50 opening high, so the gap was contained within the range. That didn't prevent extending higher to within 1 tick of the 2191.50 bias-up target. 1-minute RSI was diverging negatively again when 3-minute RSI finally left being persistently overbought, and price started diving. The 2195.00 bias-up signal was touched at the dive's low, well after 10:15 and just before 10:30. So, this is  a bias-up environment.

The character of price action at the high suggests it will be retested in even the most bearish scenario. Presumably, its retest would at least touch 2192.00. That's not necessary, and it's even unlikely if 2195.00 is probed when the bias environment starts lapsing at 11:30.

The bearish WedEX's influence is probably moot, unless the balance of the morning were to trend down through the overnight lows -- which is unlikely, because that would be under the bias-up signal during a bias-up environment. But there remains a window for injecting a pullback before Thursday's bullish seasonality, so I'm not expecting volatility to subside.

MON afternoon signal (triggered at 1:20 ET) SPX ES Bias-up: above  2195.00 2192.50 ...would target  2202.00  2199.50 Bias-down: under  2189.00  2186.50 ...would target  2183.25  2180.75 Signal status: BIAS-UP 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.

The rally persists, but without a corrective refueling dip. This morning's 2185.00 bias-up signal held as support when tested during the morning's bias environment. The plunge that tested it stopped suddenly and reversed up gradually. The earlier pattern at 2191.25 requiring a retest was then probed into the noon hour. The room for noise above 2185.00-2186.00 up to 2192.00 wasn't very influential as the rally extended through the noon hour. Now 2195.25 has been touched, while triggering this afternoon's 2192.50 bias-up signal.

It's too late to invalidate the bias-up, targeting 2199.50. But bias-up can be invalidated by exiting the bias environment back under the 2186.50 bias-down signal -- so long as 2195.25 isn't yet probed. Otherwise, a fresh high would entrench the uptrend.

Currently, a 2193.50 pullback limit is being tested, and back under 2192.50 would reverse momentum down to at least test 2188.25. None of which alone would yet invalidate the upside.

The bearish WedEX didn't invert, so the distributive influence that had triggered it last week was already absorbed. And not arbitrarily, Closing above the 2192.00 room for noise above 2185.00-2186.00 has signaled the rally is extending to 2220.00. "Unfinished business above" was left outstanding at 2199.50, and upside momentum won't be threatened Tuesday without immediately breaking back under Friday's 2187.50 prior high. 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 2199.50 2197.00 ...would target  2205.00  2202.50 Bias-down: under  2191.75  2189.25 ...would target  2186.75  2184.25 Signal status: BIAS-UP 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.