The First Trade… All out of gaps?

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…
Tuesday’s session was essentially identical to Monday. Both gapped up to new highs, recovered a post-open dip back up to new highs through the morning, and triggered no-bias through the afternoon. Each also dipped before the close, although Tuesday’s 5-point dip from 2149.00 was shallower and less pessimistic than Monday’s 7-point dip, and stopped short of its 2141.00-2143.00 target area. Meanwhile, the minimum requirement of Friday’s confirmed breakout was fulfilled, for at least a third higher close. And intraday sponsorship once again failed to gain traction for their effort .

Overnight action’s new info…
Tuesday’s late slide extended to touch 2142.00 before midnight. Narrow ranging ended with Europe’s opens, first jumping to 2147.00, and then attacking 2149.00.

If, then…
Closing slightly above the rally’s next higher 2143.00 objective nevertheless put into play even higher objectives, so long as 2143.00 maintains its recovery today. That will be difficult without gapping up above yesterday’s highs, since the rally otherwise won’t likely extend this morning — not after yesterday’s sponsorship failed to gain traction. Yesterday’s highs are being attacked, but not yet probed. It’s not yet too late, and there are still a couple of pre-open catalysts. Not gapping up could still probe higher this morning, but then we would expect the rally to start topping here.

First Trade…
[Click here to view the Bias parameters] Exiting the open at 9:45 above 2143.00 would be unlikely to trigger the 2141.00 bias-down signal at 10:15. Exiting the open above 2150.50 would be likely to trigger the 2149.25 bias-up signal.