Stock Market Trade Signals from Viditrade - 11-15-2016

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... Monday pre-open bounce above Friday's 2161.00-2162.000 highs up to 2169.50 didn't even attack Sunday night's 2174.50 highs. A brief post-open rally effort stopped even shorter. The balance of Monday's session was spent backing-and-filling back under Friday's highs. Rallying off of the noon hour's 2152.50 low extended up to 2164.00, and was poised to rally through the final hour, but a Presidential press conference paralyzed buyers through the close. Overnight action's new info... Monday afternoon's recovery resumed with little delay, probing above 2164.00 before midnight. Extending higher through Europe's opens eventually attacked 2170.00. Too much, too soon? The past couple of hours have been sliding, momentarily attacking 2162.00. If, then... Retracing the late dip from 2164.00 was not assured, but it would target a retest of Monday morning's high up to 2169.00. That was done overnight. So, is the reaction down just a temporary correction, or will last night's rally be ignored intraday like last Wednesday night and Sunday night's rallies? The dip is probably only temporary, so long as Friday's 2161.00-2162.000 highs hold as support. A rally shouldn't even test Monday afternoon's 2164.00 high post-open, and preferably gap up to and/or through 2169.00. That would again position the market for retesting the 2180.00 area, and possibly higher. By the same token, opening under Friday's 2161.00-2162.000 highs would be likely to probe under Friday and Monday's lows, targeting 2141.00 for starters. First Trade... [Click here to view the Bias parameters] Exiting the open at 9:45 under 2161.00 would be unlikely to trigger the 2166.25 bias-up signal at 10:15. Exiting the open above 2169.00 would be likely to trigger bias-up.

Post-open dip recovers to fresh highs. The open gapped up and quickly worked higher through the 2166.25 bias-up signal by 5 ticks. Reacting down to 2163.25 tested yesterday afternoon's 2164.50 high as support. It was still being overlapped as the opening 15 minutes of volatility lapsed. It was not optimal behavior for maintaining a gap up. But it held. And a quick retest of the reaction low was reversed up sharply, extending to attack the 2169.75 overnight highs to within 3 ticks. This is a bias-up environment. Its 2171.75 bias-up target is in-play. It's the next domino on the way back up to 2180.00 and possibly (momentarily) higher. None of which precludes there being a corrective dip. In fact, 1-minute RSI avoided touching overbought and then deteriorated. Now a reaction down is testing the 2166.25 bias-up signal as support. Its test should ultimately hold. And while stopping pessimistically short of the overnight high is potentially bullish from a contrarian perspective, that hasn't aided enabled retesting at least two other overnight highs in the past week. But so long as the bias environment doesn't lapse back under yesterday afternoon's 2164.50 high, the likely resolution remains up. Back under 2164.50 would otherwise start to point more substantially down.

TUE afternoon signal (triggered at 1:20 ET) SPX ES Bias-up: above  2172.25 2169.00 ...would target  2178.50 2175.50 Bias-down: under  2166.75  2163.75 ...would target  2161.50  2158.25 Signal status: 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.

Another pass at breaking resistance passes. The overnight rally touched 2169.75, then reacted down to 2161.50. Recovering through the open touched 2169.25, and this morning's ultimate high was another tick higher. Interim reactions down tested and retested 2165.00. This is a no-bias environment. Fresh highs may be probed, but this afternoon's 2169.00 bias-up signal should otherwise define the bias environment range's upper-end. A more substantial rally would be credible after the bias environment begins lapsing at 2:30. Back under 2164.50 would still be credible for probing back into yesterday's range. And that would still be vulnerable to becoming a new downleg.

The ongoing delay in repeating last Wednesday night's test of 2180.00 was resolved finally during Tuesday afternoon's last 60-90 minutes. The no-bias environment had barely lapsed (and really hadn't yet) before extending an earlier buy signal at 2167.00 up to 2178.00. Post-close action jumped to within 1 tick of 2180.00. But buyers gained traction for their efforts, so trending up further Wednesday morning is likely. Trending up can begin from gapping down, but should nevertheless last the morning and probe fresh highs. Fresh highs should include 2185.00-2186.00, with room for noise up to 2192.00. Inverting the signal requires forming a "session-long decline" setup by gapping down under 2167.00. And maintaining it. Not impossible, not even very unlikely -- only a little of both. 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  2184.25 2181.25 ...would target  2189.00  2186.00 Bias-down: under  2176.25 2173.25 ...would target  2191.50  2168.50 Signal status: noN-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.