The First Trade… Higher highs retraced again.

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…
Invalidating the traction gained by Monday’s sellers required at least gapping up Tuesday to 1943.00, but then also extending higher from there. Tuesday’s gap up to 1943.00 first reacted down to attack 1938.00. But the delay was compensated by quickly rallying back to Monday’s 1956.00 high. That made Friday’s 1968.75 pre-open high retest likely, and its 1971.00 target was met during the afternoon bias environment. Resuming the rally extended it up to 1975.50 at the cash session close.

Overnight action’s new info…
Futures had extended already to 1978.50. Its extension up to 1984.50 was retraced into and out of Europe’s opens, back to and through yesterday’s cash session close. Now 1971.00 is being attacked as support. Meanwhile, there was enough complexity to the overnight extension to consider it a “new Globex trend extreme” that requires intraday retest.

If, then…
The 1971.00 target of retesting Friday’s pre-open high has not yet broken higher. Its initial test yesterday afternoon reacted down, the subsequent higher high at 1975.50 reacted down to 1971.00, and its recovery made no higher high before the cash session close. Only futures have probed higher — and despite probing substantially higher, 1971.00 has attracted price back down to it again. Since buyers didn’t gain traction yesterday, extending the rally requires gapping up. A more subtle beginning to retesting the overnight highs would be vulnerable to reversing down hard this afternoon.

First Trade…
Exiting the open at 9:45 above 1979.25 would be likely to trigger the 1977.00 bias-up signal at 10:15. Exiting the open under 1971.00 would be unlikely to trigger bias-up.