The First Trade… Everyone’s a winner.

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…
Gapping down Tuesday under Monday’s lows inverted the traction gained by Monday’s late buyers. The lowest objective was met under 1890.00, triggering a sharp reversal up to attack the 1900.00 resistance. Potential was left outstanding to 1886.00.

Overnight action’s new info…
The slide resumed and soon tested the outstanding 1886.00 objective by 2 ticks. And held. Tuesday’s 1895.00 cash session close was recovered by midnight.  Rallying through Europe’s opens attacked 1909.00. Now a pullback to 1894.00 is trying to recover.

If, then…
Another example of the market satisfying all influences, no matter their divergence. I described the two currently relevant influences in yesterday’s post-market Wrap. First, yesterday’s last bounce had stopped pessimistically short of testing its last relative high, which is potentially bullish from a contrarian perspective. Second, that bounce had originated from only piercing the decline’s target range — the slide had stopped optimistically short of probing the entire objective, which is potentially bearish. Overnight action satisfied both. So, is momentum reversing up, or has the overnight recovery only traded one prior high’s resistance for another (1911.00 from yesterday morning’s bias environment). I would tend to be bullish here since testing the decline’s objective was responsive both yesterday and overnight. So long as the open doesn’t hold a relevant prior’s test, the window is open for a rally. Otherwise, retesting overnight lows could find no support remains.

First Trade…
Exiting the open at 9:45 under 1901.50 would be unlikely to trigger the 1904.50 bias-up signal at 10:15. Exiting the open above 1906.25 would be likely to trigger bias-up.