The First Trade… Was that the dip?

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 sudden reaction down reversed Wednesday afternoon’s required retest of the morning’s overbought RSIs at 2092.00. Despite being late-afternoon and attacking the 2086.00 prior low, the plunge was retraced entirely to 2092.50. It reacted down just as sharply into the close. But the close was well into positive territory, confirming Tuesday’s breakout. The afternoon’s 2084.75 bias-up target remained unfinished business.

Overnight action’s new info…
Wednesday’s last sharp reversal down extended lower overnight to 2082.50. Firming long before Europe’s opens has extended back up to 2091.00, which is being retested after an interim dip to 2085.25.

If, then…
Having entrenched itself, the rally can afford to hesitate again with another pullback. Like the overnight dip, it’s likely to be shallow and brief, so that the ongoing recovery can maintain a steep slope. A little deeper into the mid-to-low 2070‘s would still be effective. Regardless, a correction isn’t required, but likely if the open isn’t already rallying.

First Trade…
[Click here to view the Bias parameters] Exiting the open at 9:45 under 2087.50 would be unlikely to trigger the 2092.75 bias-up signal at 10:15. Exiting the open above 2095.00 would be likely to trigger bias-up.