The First Trade & Pre-open Tour Recording… Intact, so far.

Proper context can start the day with a solid win and make all the difference.

DAILY SCHEDULE
First, watch the pre-open Tour recording HERE <<==
Then, meet in the chaRTroom here by 9:15 ET for updates and Q&A

Through the prior close…
Thursday’s Isolation setup had been confirmed into the weekend, signaling follow-through. Sunday night’s opening surge and Monday’s gap up acted accordingly. The open’s rally got a little ahead of itself by quickly fulfilling the morning’s 2766.50 bias-up target. But a late rejection of the 2757.00 bias-up signal only dipped to 2753.00 before resuming the Isolation setup’s rally. The balance of the session rallied relentlessly up to 2780.00 — fully recovering a last-minute dip to 2774.00 into the cash session close, and then surging another 5-6 points into the Globex open.

Overnight action’s new info…
Yesterday’s last bit of enthusiasm has been retraced, but not yet reversed. Monday’s late surge never extended any higher. It initially consolidated, with errant ticks touching 2787.00. Finally breaking lower briefly touched 2775.50, a 6-point blip-up into Europe’s opens was retraced entirely down to the low. And now lower to attack yesterday’s late 2774.00 low.

If, then…
Was Monday’s optimism immediate, relentless, or excessive? The correct answer is “D”, all of the above. Surging 13 points through yesterday’s close is representative of the entire session’s 32-34 point rally. Its excess wasn’t identified until overnight action retraced the last surge. So, is the overnight retracement beginning to reject yesterday’s optimism, or only correct it? This correct answer here can be only one, or the other. And if the overnight dip is only a correction — whether or not yet complete —  then it is healthy for extending the rally higher today. Extending higher relies first on the market getting what it wants from the new Fed chair’s testimony. That could get tricky, as his 10:00 remarks may not be embargoed past 8:30 and his 10:00 appearance could discover that any positive reaction is already done. And if the remarks don’t give the rally what it wants, then its resumption would likely be detoured further by a deeper dip back down to yesterday’s morning’s “lower prior highs.”

First Trade…
[Click here to view the Bias parameters] Exiting the open at 9:45 under 2771.25 would be likely to trigger the 2774.00 bias-down signal at 10:15. Exiting the open under 2780.00 would be unlikely to trigger the 2781.00 bias-up signal.