The First Trade… And then there was one (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…
Tuesday’s intraday rally came expectedly, but not as expected. Despite being indicated to gap up as high as 1 tick above Monday’s high 2208.75 high, the 2206.25 opening print was back under Monday morning’s highs. That pre-open slump quickly extended down to attack Monday’s lows to within 2 points at 2100.00. But then the balance of the session did rally, not surging, relentlessly through multiple timing windows, to new highs at 2212.00. Last week’s pullback was confirmed to be only temporary, and the 2110.25 anchor from last Wednesday’s open — which had all but required being tested — is neutralized. Traction was gained during the afternoon.
Overnight action’s new info…
Flat-to-higher ranging has been relatively narrow. At one point dipping to 2208.50, and eventually recovering to probe Tuesday’s highs, a new high print at 2213.00 seems almost accidental. That happens to be this morning’s bias-up signal calculation, derived from yesterday’s intraday patterns. In any case, the fresh high hasn’t attracted new sponsorship. Its quick reaction back down into the range has been holding 2210.00 as support.
If, then…
This isn’t the first time that only one piece of “unfinished business above” was outstanding. It was the same piece, the next higher objective at 2222.00 which was put into play by closing above 2192.00 two weeks ago. That’s how last Wednesday’s session was greeted, and it resolved poorly. Gapping up formed an anchor that yesterday finally retested, one week and a 64-point round trip later. Traction gained by yesterday afternoon’s rally suggests the morning will trend up, too, regardless of gapping up or down. The setup can be inverted by gapping down under yesterday’s 2204.50 noon hour low, but I would still be suspicious if the 2206.00 afternoon bias environment low were broken. Otherwise, 2220.00 is in-play until proved differently.
First Trade…
[Click here to view the Bias parameters] Exiting the open at 9:45 above 2215.50 would be likely to trigger the 2213.00 bias-up signal at 10:15. Exiting the open under 2209.00 would be unlikely to trigger bias-up.