Stock Market Trading Signals - 07-30-2015

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...
Wednesday morning''s no-bias rally had been required to retest its 2091.50 bias-up signal, despite that rally having extended higher to attack 2099.00. Optimism ahead of the afternoon''s FOMC news couldn''t be bothered with resolving that, and greeted the news from 2096.00. As quickly as its knee-jerk reaction blipped-up 6 points to 2102.00, it was reversed down to 2091.50, Having neutralized the attraction below, rallying into the final hour probed fresh highs testing 2104.00. But the final hour itself ranged sideways back down to 2099.00.

Overnight action''s new info...
Room for a pullback was allowed down to 2096.00. It was tested twice after otherwise listless narrow ranging. An errant tick during its second test touched this morning''s 2095.50 bias-down signal, which reacted up into a rally up to fresh overnight highs at 2103.50. Without touching yesterday''s actual high, a reaction down has dipped to 2099.50.

If, then...
Having chipped away overnight at the 2096.00 pullback limit, attacking it through the open would be vulnerable to sliding through it -- with its nearest objective being at least 12 points lower. Not touching it until after the open would more likely find its supportive power replenished, and capable of launching a new rally leg. Gapping up would also be credible for resuming the rally.

First Trade...
Exiting the open at 9:45 back above 2098.00 after testing 2096.00 would be unlikely to trigger the 2095.50 bias-down signal at 10:15. Exiting the open under 2094.00 would be likely to trigger bias-down. Exiting the open above 2108.00 would be likely to trigger the 2105.50 bias-up signal.

Post-open bounce quickly resumes the pre-open slide.

The open tried to recover back above 2094.00 and through 2096.00 to make the pre-open slide trap shorts. That required also recovering 2098.00, but it was rejected as quickly as it was touched.

The reaction down tried to hold 2096.00. But failing to hold 2094.00 made the 2095.50 bias-down signal likely to trigger at 10:15. Actually, the 2088.00 bias-down target was already tested at 10:15.

The 2088.00 bias-down target wasn''t broken, so the bias-down signal wasn''t renewed. But this being a bias-down environment, the bias-down signal should still define the range''s upper-end. In fact, a bounce just tested it by 1 point.

Oversold 1-minute and 3-minute RSIs at the actual 2087.75 low require a retest. Just for opening the door to a downdraft instead of resuming the rally, Tuesday night''s 2084.25 low''s retest is likely, too. And its retest is likely also to visit 2077.00. The next upleg is likely to begin from retesting 2084.25, however deeply.

Maybe a lack of buyers wasn''t what prevented extending higher this morning. Perhaps the problem was too much selling pressure. Fulfilling the 2088.00 target so quickly does introduce that possibility. So would exiting the bias environment back above its 2095.50 bias-down signal. Follow-through would have to extend higher impatiently to be valid.

WED afternoon signal (triggered at 1:20 ET) SPX ES Bias-up: above 2108.75
2101.75
...would target 2114.25
2107.50
Bias-down: under 2102.25
2095.50
...would target 2097.50
2090.50
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.

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))
Tuesday''s sell signal had extended down Wednesday afternoon, following an initially favorable knee-jerk reaction to the FOMC policy statement. Its ultimate reaction down extended much deeper Thursday, fulfilling the 1.0900 minimum objective for only a correction. The drop may extend to fresh lows under 1.0815-1.0835 so long as 1.0945 isn''t recovered.

Gold Aug Contract (GC, ETF: (GLD))
The 1083.00 target was fulfilled overnight which allows a rally leg to begin. But, first, closing back above 1086.00-1087.00 Thursday was the minimum requirement to signal that sellers were done. A bounce attacking 1095.00 reacted down to attack 1086.00-1087.00, and now closing back above 1093.50 can launch a rally.

Silver Sep Contract (SI, ETF: (SLV))
Wednesday''s probe above the 14.75 buy signal was repeated after the FOMC policy statement, but never extended higher. Dipping overnight was recovered back above 14.75 for another opportunity to extend higher. Closing above 14.90 would confirm a rally leg underway.

30-year Treasury Sep Contract (US, ETF: (TLT))
Dipping deeper Wednesday night to 153-13 didn''t pevent recovering Thursday to fill the gap back to 155-08, coming within 1 tick of the bounce''s 155-16 target. Closing above it would put into play the next higher objective at 156-20. Meanwhile, back under 154-12 would launch a new downleg, or at least a correction of the recent rally.

Crude Oil Sep Contract (CL, ETF: (USO, USL) (UWTI-long, DWTI-short))
Another test of the 49.25 buy signal Thursday was also unable to break higher. Closing back under 48.25 signals the decline has resumed and is targeting 44.25.

Natural Gas Aug Contract (NG, ETF: (UNG, UNL))
Firming a little further overnight to the 2.77-2.88 range''s upper-end was already being retraced when Thursday''s EIA report triggered a deeper slide back down to its lower-end. Without breaking out either way, there is no new signal.