The First Trade… “If you can keep it.”

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…
Lacking a single-minded relentless overnight rally didn’t deter Thursday’s intraday action from once again rallying sharply to fresh recovery highs. The open’s gap up to 2068.00 first reacted down 7 points to fill the gap back to Wednesday’s 2062.00 cash session close. Then the balance of the day resumed the rally. The last 60-90 minutes consolidated pessimistically short of touching last Thursday’s 2089.75 “higher prior lows.”.

Overnight action’s new info…
Uncharacteristically narrow ranging developed mostly between 2085.00-2088.00. Dipping through Europe’s opens down to 2081.50 was recovered back into the earlier range, and now the range’s upper-end is being probed by fresh highs attacking 2090.00.

If, then…
Is it only a correction, or a recovery back to week’s highs? “The latter, madam, if you can keep it.” The maximum corrective rally had room up to last Thursday’s 2089.75 higher prior lows, or else last Thursday’s 2119.50 post-close highs would become targeted up to 2125.25. Stopping pessimistically short of the resistance yesterday afternoon is potentially bullish from a contrarian perspective. Even the most bullish resolution doesn’t preclude a temporary detour back down, like to 2071.00, whether from only attacking 2089.75 or after probing above it intraday. A more serious reversal down should have greeted today’s open already in decline, which doesn’t seem likely now.

First Trade…
[Click here to view the Bias parameters] Exiting the open at 9:45 above 2091.00 would be likely also to trigger the 2092.50 bias-up signal at 10:15. Exiting the open under 2084.25 would be unlikely to trigger bias-up.