The First Trade… Giving it a shot.

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…
Sunday night’s gap up immediately fulfilled the 2091.00 “unfinished business” left outstanding from Friday. Trending down into and out of Monday’s open extended to fresh lows through the morning. Reacting up from a blip-down to the 2071.50 bias-down target launched the afternoon’s recovery, eventually probing fresh session highs up to 2082.00-2083.50. No traction was gained in the session’s “ineffectual pessimism,” and no unfinished business was left outstanding.

Overnight action’s new info…
Creeping higher… Narrow ranging initially maintained Monday’s late 5-point surge. Another sudden surge 5-point attacked 2088.00, but it was soon retraced down to 2081.75. Firming into Europe’s opens soon surged to a fresh high testing 2091.00. Now its reaction down is trying to hold 2085.00.

If, then…
Monday was the third consecutive session since Wednesday’s high to probe under the prior day’s low, with lower highs. Despite the multi-session trend, Monday’s close recovered back above the two prior sessions’ lows. Will the slowing momentum be exploited today? No traction was gained yesterday, so resuming yesterday afternoon’s rally this morning requires gapping up — which is currently indicated. The gap up must also be maintained through the open and preferably also extended. Regardless, the alternative to rallying this morning would be to resume the downtrend from last Wednesday’s high… Afternoon volatility may be inhibited by high-profile earnings due after today’s close from AAPL, EBAY and (to a lesser degree) CMG.

First Trade…
Exiting the open at 9:45 under 2083.50 would be unlikely to trigger the 2086.00 bias-up signal at 10:15. Exiting the open above 2088.00 would be likely to trigger bias-up. Exiting the open above 2093.50 would be likely to renew the bias-up signal.