The First Trade…Bubbling up.

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 8-10 point gap down fell another 8 points through the morning, and still managed only to attack Thursday’s 2147.75 lows. That relative shallowness is a product of how wide ranging was Thursday’s choppy session. The balance of Friday’s session fluctuated back up to the 2156.50-2162.00 open, within the morning’s range, which reflected the narrower participation of the Veteran’s Day holiday. No unfinished business was left outstanding.

Overnight action’s new info…
Friday recovery back up to its morning highs resumed immediately. And the wide-ranging choppiness of Thursday resumed, too. Sunday night’s open gapped up 5 points and extended relentlessly to attack 2174.00. Reacting down to attack 2165.50 was recovered to 2174.00, which held several tests as resistance through Europe’s opens. Gradually slipping from there suddenly broke sharply lower, briefly probing negative territory and Friday’s “lower prior highs” down to 2158.00. A recovery attempt is now testing 2165.00.

If, then…
Attraction to higher objective remains stronger than any signs that the slowing upside momentum is rolling over. Gapping up and extending higher Sunday night suggests that attraction remains influential, but its reaction reminds us to be watchful for more backing-and-filling first. That downside become likelier if today’s open is back under Friday’s 2161.00-2162.00 highs, which would isolate Sunday night’s rally to the overnight. Otherwise, extending higher to retest 2180.00 intraday would still be vulnerable to reacting down, instead of fulfilling its potential to 2185.00-2186.00.

First Trade…
[Click here to view the Bias parameters] Exiting the open at 9:45 above 2169.00 would be likely to trigger the 2165.50 bias-up signal at 10:15. Exiting the open under 2158.75 would be unlikely to trigger bias-up.