The First Trade… Isolating sellers.

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…
Bouncing 13 points into and out of Monday’s noon hour peaked at 1895.00. But the bias environment exit was attacking the morning’s 1882.00 low. Plunging from there tested 1868.00 into the close, bouncing momentarily to attack 1874.00.

Overnight action’s new info…
The decline tried resuming overnight, dipping to 1868.00 and then recovering up to 1872.75. Then it really resumed, dipping to fresh lows. And lower. Greeting Europe’s opens at 1856.00 reacted down even further to attack 1851.00, which was soon recovered. And now so has the entire overnight drop, as a fresh high is attacking 1880.00.

If, then…
Gaining traction for its effort Monday afternoon entitled the decline to lower lows this morning. This setup can invert if already rewarded overnight. Meanwhile, anything more substantial than an isolated test of 1856.00 would have suggested the corrective rally ended already. Yesterday’s decline was rewarded already. Now the test of 1856.00 can be isolated by exiting the overnight timing window back in positive territory. Then the recovery’s risk is at 1880.25-1881.00. Strong-handed buyers would either quickly exceed it. or else delay its test patiently. Weak-handed sponsorship would test it quickly before reversing down to duplicate the overnight drop to some degree.

First Trade…
Exiting the open at 9:45 under 1873.00would be unlikely to trigger the 1876.50 bias-up signal at 10:15. Exiting the open aove 1880.25 would be likely to trigger bias-up.