The First Trade… Employment Situation coming.

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…
Thursday’s bullish scenario began unfolding at the opening ticks. But surging substantially and then triggering bias-up couldn’t prevent sliding into the noon hour until the final hour..Holding the session’s 2082.00 pullback limit allowed the final hour’s 10-point bounce to at least test the morning’s lows, but not to recover them. “Unfinished business above” was left outstanding at the morning’s 2103.25 bias-up target.

Overnight action’s new info…
Thursday’s late rally initially extended a couple of points to 2094.00, but still reacted down into negative territory at 2087.50. Europe’s opens triggered more of a spike up than a surge, soon attacking 2097.50. A 7-point slide retraced almost all of the spike, but only briefly, as 2097.50 is now being retested.

If, then…
Buyers didn’t gain traction yesterday, so resuming yesterday morning’s rally this morning would require gapping up above yesterday morning’s 2102.00 high. That’s only another 5-points above the current Globex highs, with a catalyst coming next hour — the Employment Situation report. By the same token, sellers didn’t gain traction yesterday, either, so gapping down in reaction to the payrolls report must open at or under 2082.00 to extend deeper. That’s the rally’s pullback limit, so any lower would threaten the recovery. This being Friday, attracting sponsorship for extending a knee-jerk reaction may be more difficult than attracting sponsorship for sustaining its reaction.

First Trade…
[Click here to view the Bias parameters] Preliminary indications are not available ahead of an Employment Situation report.