The First Trade… Another overnight run.

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’s open had recently recovered from Sunday night’s slide to 2116.75, back up to unchanged at 2127.00. The open’s blip-up to 2130.00 reacted down 9 points through the open. Its partial recovery was reversed down deeper to test 2118.00, and the balance of the session chopped its way slightly higher into the close. “Unfinished business” was left outstanding both above and below, at 2132.25 and 2116.00, respectively.

Overnight action’s new info…
Monday’s last late chop from 2119.00 up to 2124.00 was corrected immediately at the Globex open down to 2120.25. The balance of the night has trended up relentlessly to 2135.50, until a 4-point dip that is now trying to recover.

If, then…
Buyers didn’t gain traction Monday, so rallying requires gapping up, above the morning’s 2129.00-2130.00 highs. And also above 2132.25 if it is touched post-open. Touching it overnight doesn’t yet invoke this requirement. And regardless of by how much it was pierced, rejecting its test through the open could slingshot the market back down — under Monday’s lows to retest Thursday’s 2107.75 low down to at least 2105.00.

First Trade…
[Click here to view the Bias parameters] Exiting the open at 9:45 above 2133.75 would be likely also to exceed the 2131.75 bias-up target at 10:15, renewing the bias-up signal and next targeting 2136.75. Exiting the open above 2128.00 would be likely at least to trigger the 2125.75 bias-up signal at 10:15.