The First Trade… No agreement IS agreement.

 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…
Friday’s expiration session developed almost entirely in negative territory, resisted by Thursday’s 2076.00 close. Fresh lows down to 2069.50 during the afternoon bias environment were recovered just enough just in time to avoid gaining traction, firming further to close at 2075.00. Unfinished business below was left outstanding at 2067.50.

Overnight action’s new info…
Sunday night’s open gapped down 10-11 points to 2064.00 while Crude Oil gapped down almost $2 on no agreement by OPEC members to cut output. Crude’s loss extended to almost $3 as 2058.50 was touched. Reacting up into and out of Europe’s opens twice tested this morning’s 2071.75 bias-down signal as resistance, reaching 2072.75. Both tests reacted back down under Friday’s 2069.50 afternoon bias environment lows to test 2068.00 as support, which is being retested again now. Crude remains well under Friday’s lows.

If, then…
Unfinished business at 2067.50 was fulfilled overnight, while testing its next lower objective at 2059.50. The reaction up to 2070.00 was impressive, but also premature. The bullish WedEX should dispense similarly with the cash session gapping down. In any case, the bullish WedEX should soon resolve any open by rallying through the morning. But a bullish WedEX may be difficult if opening action must absorb selling by overnight buyers getting flat. Regardless, I’ll be monitoring for rallying back into positive territory, and then extending higher while Crude Oil does not, for early signs of a multi-session rally that breaks free from its Crude Oil correlation.

First Trade…
Exiting the open at 9:45 under 2068.25 would be likely to trigger the 2071.75 bias-down signal at 10:15. Exiting the open above 2073.25 would be unlikely to trigger bias-down.