The First Trade… Another narrow overnight range.

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…
A third consecutive narrow overnight range greeted Tuesday’s open, which once again resolved in immediate range expansion. Sliding through the morning touched the 2171.50 pullback limit, which was probed by 3 points into the afternoon bias environment’s exit. Although possible, collapsing was avoided by bouncing into the close, back up to the noon hour’s high. But no higher, which would have rejected the afternoon’s probe lower.

Overnight action’s new info…
Fourth time’s a charm? Yesterday’s late afternoon bounce has not extended a single tick. And another range narrower than 4 points has been fluctuating around unchanged.

If, then…
Tuesday afternoon’s low was similar to Friday afternoon’s low also being vulnerable to collapse.. Friday’s late bounce at least probed its noon hour high, and then probed higher overnight, enabling Monday morning’s rally. Last night’s ranging doesn’t reflect such eager buyers. Neither does it reflect eager sellers. Not gapping open either way this morning may leave unanswered whether yesterday’s reaction down has resumed last week’s decline, or if Friday’s bounce is going to extend higher first. But immediate range expansion would suggest at least one or the other will be attempted.

First Trade…
[Click here to view the Bias parameters] Exiting the open at 9:45 under 2170.00 would be likely to trigger the 2171.50 bias-down signal at 10:15. Exiting the open above 2177.00 would be unlikely to trigger bias-down. Exiting the open above 2182.00 would be likely to trigger the 2180.50 bias-up signal at 10:15.