The First Trade… Flushed out, or flushing?

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…
Eking higher through the morning had attacked 2060.00 when the noon hour began. The next two timing windows were spent sliding to attack overnight lows within 6 ticks at 2048.75. The final hour’s bounce only attacked 2056.00 instead of recovering it, still undermining the rally’s momentum.

Overnight action’s new info…
Choppy ranging eventually touched 2056.00, which was rejected abruptly. Sliding into and out of Europe’s opens reached 2042.25. A 7-point bounce resolved down to momentarily touch 2041.25, quickly settling in to range narrowly around 2044.50.

If, then…
Including last night’s slide, three relatively substantial downlegs have developed since Wednesday morning’s attack on 2065.00. There is a fine line between temporary correction and momentum reversal, especially ahead of a high-profile influential econ report like this morning’s monthly payrolls. The pullback is vulnerable to becoming a trend reversal if not already ended by the open. While 2044.50‘s test would suffice for completing a pullback, it has room for noise down to 2039.25. The next lower objective at 2032.00 could be a last line of defense before reinstating 1980.00. All of which could become moot by a favorable reaction that opens back within yesterday’s range.

First Trade…
No preliminary levels are considered prior to an Employment Situation report.