The First Trade… Another banana peel slip.

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 night’s slide had greeted Tuesday’s open back at Friday’s 2060.50 close, rejecting Monday’s interim rally. Probing lower and not exploiting recovery setups then indicated the trend was down, extending to 2048.00. Rallying into and out of the noon hour triggered the afternoon’s 2057.00 bias-up signal. Being only a correction, the rally extended quickly to within 1 tick of its 2063.50 target. Being a correction that had met its target, price fell back to 2052.50. The position-squaring window’s bounce attacked 2059.50.

Overnight action’s new info…
Firming into Asia’s opens had attacked 2060.50, but Tuesday’s late low was  soon being probed down to 2051.25. Europe’s opens triggered another attack on 2059.50, but that was soon retraced, and then reversed. Tuesday and Friday’s lows are being probed to 2041.00.

If, then…
There was no bullish reason to revisit Friday’s range. It had already recovered from probing early-April’s consolidation. Its breakout had launched the last rally leg, so retesting it once was done either to launch another rally, or else to break lower. Retesting it twice suggests the latter. Having failed Monday’s bounce from Friday’s testing the prior consolidation’s upper-end as support, a probe under its 2030.00-2035.00 lower-end is the next objective. A significant gap down is indicated, which if not being reversed through the opening 15 minutes, would suggest significant follow-through into the afternoon.

First Trade…
Exiting the open at 9:45 under 2042.75 would be unlikely to recover the 2046.75 bias-down target by 10:15 and renew the bias-down signal. Exiting the open above 2048.75 would be likely to recover the bias-down target through 10:15.