The First Trade & Pre-open Tour Recording… Morning stretch.

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…
Friday’s session was preceded by an overnight drop, and the open was greeted in recovery mode. That was nothing new for the week, not until the recovery failed, miserably. Thursday night had initially plunged 40 points on China tariffs news from its 2662.25 intraday close. That was retraced only to 2648.00 pre-open, and then almost to 2657.00 through the open. The balance of the morning reversed back down to within 5 points of the 2620.00 overnight lows. The flat-to-lower noon hour resolved down sharply to 2584.50 — down 78 points from Thursday’s close. The final hour bounced to 2611.00. No “unfinished business above” was left outstanding, having rejected the Wednesday-Thursday test of 2644.00 and 2660.00.

Overnight action’s new info…
Sunday night’s gap up immediately recovered Friday’s last-minute reaction down from 2611.00. The gap up extended higher to test 2625.00 by midnight. Narrow ranging into Europe’s opens blipped down to attack 2615.00, then blipped-up to attack and test 2628.00. But its reaction down is now attacking 2618.00.

If, then…
The relentless overnight rally is relative shallow, and still contained by the range of Friday afternoon’s collapse. It has gotten into position for more easily recovering a relevant level — like Friday afternoon’s 2634.00 bias environment high — which would be bullish if recovered through the open. Meanwhile, however, the likely alternative to extending higher is not only to retesting Friday’s low but trending through it.

First Trade…
[Click here to view the Bias parameters] Exiting the open at 9:45 under 2612.00 would be unlikely to trigger the 2620.00 bias-up signal at 10:15. Exiting the open above 2621.50 would be likely to trigger bias-up.