The First Trade… Bad news bounce.
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…
Friday’s session tracked its likely scenario by rallying in the morning and then dropping into the afternoon. The morning’s 2197.00 bias-up signal neatly defined the window’s upper-end, 
and dipping back under 2192.00 signaled momentum reversing down. But 2187.50 held a couple of tests during the afternoon bias environment while RSIs diverged positively, instead of extending down to the 2181.00 target. The balance of the session retraced to the 2192.00 sell signal. But only retraced it.
Overnight action’s new info…
Sunday’s open was greeted by an important referendum in Italy having lost, presumably placing Italy’s banks in jeopardy. The open gapped down to test and retest 2181.00 down to 2179.00. Its reaction probed Friday’s lows up to 2189.00 and then corrected down to 2182.00. Europe’s opens were greeted by a steep surge already testing 2196.00, and extended to attack 2206.00. Now a dip is testing and retesting 2299.00.
If, then…
I posed this question about Sunday night’s gap down when opening the chaRTroom last night: “Is that the end of what was likely to be only a brief pullback before probing fresh highs?” Up 27 points off the overnight low, still I only suspect the answer is yes. One concern about this recovery is the timing of its origin — already surging into Europe’s opens prevented a sympathetic knee-jerk reaction to mirror the Globex open. It suggests the recovery is premature and sponsored by weak hands. Regardless, the overnight low need not be revisited, but last Wednesday’s 2210.25 open all but requires a retest, and the rally has an even higher unmet objective above at 2220.00. None of which prevents post-open backing-and-filling if the overnight short-squeeze isn’t quickly resumed.
First Trade…
[Click here to view the Bias parameters] Exiting the open at 9:45 above 2203.50 would be likely to recover the 2200.75 bias-up target through 10:15 to renew the bias-up signal, next targeting 2207.75. Exiting the open above 2197.50 would be likely at least to trigger bias-up.