The First Trade… Picking up where yesterday left off.

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…
Sunday night’s “new Globex trend extreme” at the 2177.75 overnight high was left outstanding Monday, and its eventual retest is required. But opening back in Friday’s range and staying thee isolated the overnight highs, so that intraday sentiment could take an opposite tack. The noon hour’s 2160.00 area lows held through the afternoon, as did 2166.00 resistance. No other “unfinished business” was created and no traction was gained.

Overnight action’s new info…
Monday’s closing attack on 2166.00 resistance was soon broken by a rally to 2171.00. Its reaction drifted back down to 2166.00 ahead of Europe’s opens, which triggered a steep drop back down through Monday’s lows to 2157.50. Now a bounce ranging a couple points back above Monday’s lows.

If, then…
The next lower objective would be to retest Thursday’s 2153.50 low, as a consequence to Friday morning’s trending above Thursday’s highs without traction. Despite the overnight slide, not already trending down at Tuesday’s close would make the 2177.75 high’s retest likelier, first. Gapping down under Monday’s 2160.00 lows would likely trend down through the morning. Regardless, nothing can change Monday’s sentiment peak setup, and intraday reaction’s confirmation. The burden of proof is back on buyers.

First Trade…
[Click here to view the Bias parameters] Exiting the open at 9:45 above 2166.00 would be unlikely to trigger the 2160.75 bias-down signal at 10:15. Exiting the open under 2158.00 would be likely to trigger bias-down.