The First Trade… Off to a good start (for longs).
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 decline didn’t find an air pocket. But selling pressure was relentless, and traversed the entire 2230-handle, anyway. And it trended, in a series of lower lower lows and lower highs. Starting at the morning’s 2248.00 bias-up signal, with its sights set 2230.00-2232.00, the target was met, even probed by more than 1 point. A bounce tested the target range’s upper-end into and out of0 the cash session close up to 2237.25. No new objectives were created that weren’t also met intraday.
Overnight action’s new info…
Strong economic news from China and limited terrorist incidents over the holiday have combined to start off the new year strongly. Monday night’s open gapped up above Friday afternoon’s highs to 2241.00 and extended immediately to 2245.00. A 5-point pullback was recovered to fresh highs before midnight as the rally resumed into Europe’s opens. Peaking at 2251.50 was pessimistically short of Friday’s 2252.00-2253.00 pre-open highs. Resuming the rally again has extended to 2255.25, testing Wednesday morning’s “lower prior highs.”
If, then…
Attractions below at 2215.00 would have been in-play if today’s open were anything weaker than a gap above Friday afternoon’s 2239.00 high. Globex opened above it, extending far above it. Friday’s late drop is rejected, along with the traction sellers had gained, and its momentum is reversed up. Extending higher through the open could form a “session-long rally” setup targeting new highs. That’s not assured, as the open is currently indicated to test “higher prior lows,” and not extending higher through the open would more likely resolve in backing-and-filling through the morning. Regardless, a gap back at Friday’s 2236.50 close is now left outstanding below..
First Trade…
[Click here to view the Bias parameters] Exiting the open at 9:45 above 2249.50 would be likely to renew the bias-up signal by also exceeding the 2245.25 bias-up target at 10:15. Exiting the open under 2246.00 would be unlikely to renew the bias-up signal.