Stock Market Trading Signals - 01-23-2017

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... Friday's opening surge had held a test of resistance at the morning's 2272.00 bias-up target. Reacting down into the noon hour to 2260.00 had held support upon filling the gap back to Thursday's close. The balance of the session ranged up to 2266.00 resistance until it had become too late to sponsor a recovery. Overnight action's new info... Friday's late bounce had both gravitated to 2266.00 and held its resistance, already having signaled it would hold. Sunday night's open didn't delay reversing down to and through Friday's 2260.00 noon hour low. Narrowly consolidating down to 2259.00 blipped-down to touch 2258.00 at Europe's opens. Snapping back up extended to attack 2264.00, where price has since hovered If, then... Expiration's influence on Monday morning's price action may prevent trending in either direction, unless already trending at the open. Resolving down at any time would target at least a retest of oversold RSIs at Thursday's 2253.00 low, if not also the prior week's 2248.50 actual low since its pivotal low was already retested. Although not currently threatened, a rally's initial objective would be to test Friday's opening anchor above, and likely test of 2278.25. First Trade... [Click here to view the Bias parameters] Exiting the open at 9:45 under 2257.50 would be likely to trigger the 2261.50 bias-down signal at 10:15. Exiting the open above 2264.00 would be unlikely to trigger bias-down.

Gap down's recovery attempt fails. Gapping open 4 points under Friday's 2266.25 cash session close could only touch the 2261.50 bias-down signal. Reacting up filled the gap up to 2267.50. Retracing back down probed the open's low, and Friday's 2260.00 low, down to 2258.75. Triggering the grace period didn't prevent triggering late bias-down. The 2255.50 bias-down target is met already -- too late to renew the bias-down, but neither was it tested and held through 10:15.. So, extending down probably also retests Thursday's 2253.00 low, if not also the prior week's 2248.50 low. The earliest indication of not extending down would be to recover 2265.00, preferably through the bias environment exit. Otherwise, a deeper pullback is underway.

MON afternoon signal (triggered at 1:20 ET) SPX ES Bias-up: above  2261.75 2256.75 ...would target  2267.00 2262.25 Bias-down: under  2257.75  2253.00 ...would target  2252.75  2247.75 Signal status: noN-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.

One target met, and not extending lower. Two pieces of unfinished business below greeted today's session. Thursday's oversold RSIs at 2253.00 required a retest, as does the prior week's 2248.50 low. This morning's drop probed 2253.00 once down to 2251.75. No deeper, and for no longer. No lower objective was put into play. Not even 2248.50, although it wouldn't have been unusual to extend down to it. Not unusual, perhaps, but also not today, probably. The 2256.75 bias-up signal didn't trigger, not even with the grace period. It also didn't hold. Rather, it was still being overlapped to trigger noN-bias. A surge is now testing this morning's 2261.50 bias-down signal as resistance. Back under 2257.50 would start to suggest this surge is too late to gain traction, let alone to extend higher. The next lower objective under 2248.50 would be likely. Otherwise, there's still room up to 2266.75 before signaling a bigger rally underway, targeting new highs.

The noon hour's test of last weeks' 2253.00 low had recovered to attack 2262.00 during the bias environment. Its reaction down to 2256.00 was retraced entirely, and even probed by 1 point to attack 2263.00. But the afternoon's bounce wasn't extended. And it could have been. An objective below had been fulfilled and held. The afternoon's noN-bias surge didn't require being retraced, but was retraced anyway. The 2256.75 bias-up signal held as support to avoid reversing momentum down. There was plenty of time for a path up to gain traction. And then less time. And finally no time. Buyers never regained traction. Rallying Tuesday morning should begin by gapping up, back above Monday morning's 2266.00 resistance. Its reward would be another test of prior highs. Trending down could also develop overnight, but need not for the pullback to resume on the way to testing 2248.50 below. 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  2271.00 2266.00 ...would target  2277.00  2272.25 Bias-down: under  2260.75  2256.00 ...would target 2255.50  2250.50 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.