The First Trade… Anchored uplegs

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…
Gapping up Wednesday immediately fulfilled the rally’s next higher objective at 1907.00. It was soon exceeded on the way to fulfilling its potential to 1920.00. Higher and higher highs were probed, up to 1924.50 and 1927.25, each time reacting back down to test 1920.00 briefly as support. Buyers didn’t gain traction for their effort (although the bias environment exit was above the its prior timing window, the final hour’s entry was not).

Overnight action’s new info…
Quickly returning to Wednesday’s 1927.25 high eventually blipped-up to 1931.50. Like yesterday’s probes, another reaction down tested 1920.00, this time more deeply down to 1916.75 (within 1 tick of this morning’s bias-down signal). But also like yesterday’s reactions, that recovered to another higher high at 1933.50. And now its reaction down is attacking 1928.00.

If, then…
Not gaining traction yesterday requires the open to gap up if the rally intends to extend higher without delay. That’s half the battle. The setup also requires extending higher through the opening 15 minutes of volatility. Trending up is difficult if 1920.00 is still attractive. And since yesterday’s setup was similar, it’s unlikely to repeat today. Not gapping up at all would simply be vulnerable to trending back down through the morning.

First Trade…
Exiting the open at 9:45 above 1929.00 would be likely also to trigger the 1927.75 bias-up signal at 10:15. Exiting the open under 1921.25 would be unlikely to trigger bias-up.