The First Trade… Make, or break. Or, both.

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…
The week began with a largely “inside day” contained within Friday’s range (the lone exception being the noon hour’s momentary 2183.50 high, if not counting the 2184.50 overnight high). A remarkable 6-7 intraday swings alternated between up and down, an orderly fashion usually reserved to trending action. Oversold RSIs were left outstanding at the 2175.00 late-morning low. The morning’s 2185.00 bias objective was left outstanding above..

Overnight action’s new info…
Flat-to-higher narrow ranging drifted narrowly into and out of Europe’s opens, and through Monday’s 2183.50 high. Surging an hour later touched 2187.25. Its 3-point reaction down was recovered entirely, briefly extending up to 2188.00.

If, then…
Having gained no traction yesterday, trending this morning requires gapping open beyond yesterday’s range. Overnight action indicates as much, at least at this moment. But overnight action is also hesitating upon filling the gap back up to last Monday’s 2187.00 close. Yesterday’s highs formed upon filling the gap back up to Friday’s close, which illustrates the difficulty in testing resistance intraday. Gapping up to and through 2187.00 would be more reliable for extending higher post-open. The minimum reward would be new highs, at least momentarily. Perhaps at most momentarily, as new highs would be vulnerable to reversing back down aggressively.

First Trade…
[Click here to view the Bias parameters] Exiting the open at 9:45 above 2187.00 would be likely to trigger the 2185.00 bias-up signal at 10:15. Exiting the open under 2182.00 would be unlikely to trigger bias-up.