The First Trade… Out of the frying pan.

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…
Already retracing Monday’s late rally before Tuesday’s close, the attraction below had been neutralized. It was a pretty big rally, and so a big retracement. And there were many other big rallies and retracements throughout the day. The last rally was big, and gained a little traction, but it was retraced just enough to close back within the day’s wide range — leaving overbought RSIs outstanding at its 1863.75 high.

Overnight action’s new info…
Room for extending the Tuesday’s late pullback to 1840.00 was exploited down to 1838,50. Twice. Already rallying into Europe’s opens, only a blip-down had to be absorbed before surging to 1870.50. the surge is being consolidated back down to 1864.50

If, then…
The next higher objective put into play yesterday afternoon was a test of Friday afternoon’s 1868.00 “higher prior lows.” Done. The only challenge now is the same challenge as at yesterday’s open — already having fulfilled its upside attraction. The gap back to Friday’s 1873.25 and 1875,50 closes could be filled, too. It’s not required, but the potential may be enough to encourage extending the rally to test 1881.00 and 1888.00. Fed Chair Yellen’s congressional testimony may also be a challenge, or an accomplice.

First Trade…
Exiting the open at 9:45 back under 1856.50 would be unlikely to exceed the 1861.25 bias-up target at 10:15. Bias signals are otherwise well out of range currently.