Stock Market Trade Signals from Viditrade - 08-24-2015

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

CHARTROOM LINK(s)
o Win XP-Friendly entry
o non-xp friendly (ilinc)
(pre-open Market Tour begins at 8:55 ET)

Through the prior close...
Friday''s gap down extended Thursday''s break under 2035.00, which had pretty much been the massive topping pattern''s last line of defense. Trending down throughout the morning didn''t discount the bearish WedEX. The afternoon''s bias environment corrective bounce resolved down to resume the decline with a vengeance. Momentum and support break combined to suggest hold-short, especially with the bearish WedEX in-play.

Overnight action''s new info...
Sunday night''s open gapped down just 3-1.2 points from Friday''s 1968.00 cash session close to the 1964.50 bias-down signal. Extending down formed an otherwise large sideways range down to 1950.00. That broke lower to 1911.00 into and out of midnight. Bouncing since then attacked 1943.00 before reacting down 6 points.

If, then...
Whatever created the bearish WedEX at Wednesday''s close can still be influential after this much time, that much is common. A 166-point decline is a little less common, so the bearish WedEX''s contributing factors may have become moot. Bouncing 32 points from overnight lows does correct that decline to better enable the bearish WedEX playing out this morning as it commonly would. The Dow''s low was 525 points under Friday''s close, and doubling it would produce a 1000-point down day.

First Trade...
Exiting the open at 9:45 above 1945.00 would suggest extending the bounce to 1955.00 (1952-1957). Exiting the open under 1930.00 probably will trend down through the morning''s bias environment.

Gap down after trading halt finds a lot of buyers, or a lot fewer sellers.

I''m reluctant to get bullish on this morning''s 97.50 point rally from 1831.00 up to 1928.50. Another 3-4 points would have made a big difference.

No, I''m not really that particular about the exact calculations. Structure is more important, and the market has been ranging around last night''s initial 1911.00 low.

Relevant resistance would be cleared at 1931.00. Without extending higher, this morning''s nearly 100-point bounce may yet prove to be only a temporary correction.

Having drifted back down toward the range''s 1898.25 low, recovering back above 1920.00 would start to suggest another upleg underway. Otherwise, there''s no particular requirement to resolve down immediately. But resolving down would likely find a couple of air pockets on the way back down to 1882.00 and 1851.00.

One observation about the bigger picture -- the "throat" of October''s "V" bottom around 1882.00 has held its test through the bias environment beginning to lapse. Apart from the near-term signals listed above, the biggest proof of extending down would be to enter the noon hour back under 1882.00.

MON afternoon signal (triggered at 1:20 ET) SPX ES Bias-up: above 1948.25
1943.25
...would target 1957.00
1952.00
Bias-down: under 1919.00
1914.00
...would target 1902.00
1897.00
Signal status: LATE NO-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.

A daily summary of high-profile members of several complexes... View a more detailed discussion of each chart at the end of today''s Market Wrap.

Eurodollar Sep Contract (EC, ETF: (FXE, UUP))
A third consecutive close at resistance gapped up and extended higher intraday Monday. From 1.1120 to 1.1220, to 1.1360 and now up to a 1.1700 handle with a probe above 1.1800 in-play.

Gold Dec Contract (GC, ETF: (GLD))
Flat-to-lower ranging during Sunday night was recovered almost grudgingly to probe a fresh high that satisfied the 1169.00 target narrowly missed last week. Gradually reacting down into the close later spiked down momentarily to 1145.00 and back up again,

Silver Sep Contract (SI, ETF: (SLV))
Complete divergence allowed a break lower back to last week''s low, which had narrowly stopped 2 cents short of touching its 14.65 pullback objective. It was actually probed by at least a nickel Monday morning. Its reaction up to 15.10 reacted down, but held above 14.65.

30-year Treasury Sep Contract (US, ETF: (TLT))
Continued flight-to-quality triggered Sunday night''s surge to new highs that extended intraday to 163-01. The stock market''s recovery attempt let bonds drop sharply back down to 159-26, bouncing into the close to overlap the rally''s prior 160-20 target as resistance.

Crude Oil Oct Contract (CL, ETF: (USO, USL) (UWTI-long, DWTI-short))
Fresh lows Sunday extended through Monday morning and eventually came within 20 cents of fulfilling this leg''s 37.55 target.

Natural Gas Aug Contract (NG, ETF: (UNG, UNL))
Gapping down and probing a fresh low was reversed back into positive territory Monday intraday. While that may foreshadow a bottom forming, it doesn''t qualify as the bottom, or as its reversal, which would yet be able to form. In fact, the recovery was retraced into negative territory, although not to a fresh low.

TUE morning signal (triggered at 10:15 ET) SPX ES Bias-up: above 1916.50
1910.00
...would target 1926.50
1920.00
Bias-down: under 1866.25
1860.00
...would target 1855.25
1849.00
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.