The First Trade & Pre-open Tour Recording… Overnight fizzle.

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

NEW 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…
Monday’s gap up to 2386.00 was reversed immediately to fill the gap back down to Friday’s 2381.00 close. But no lower, despite having put into play an offsetting test of the morning’s 2377.25 bias-down signal. Recovering back to the 2387.50 overnight highs was later extended to attack 2391.00, after absorbing a knee-jerk reaction down on headlines. It wasn’t too late for a third reaction down, or for that reaction’s break back under 2388.00 to prevent a close above it that would otherwise have been bullish.

Overnight action’s new info…
An extremely narrow and flat 2-3 point range held one test of 2388.00, and has since been bouncing repeatedly off of 2384.25.

If, then…
Gapping up above 2391.00 Tuesday would suggest last week’s rally is resuming. That’s not indicated, and neither pre-open economic report is capable of triggering that. Quarterly earnings are still coming, but the positive surprises aren’t registering in the market. The door to fresh lows remains every bit open as the two prior sessions — not required, but likely to be recovered.

First Trade…
[Click here to view the Bias parameters] Exiting the open at 9:45 under 2381.00 would be likely to trigger the 2383.25 bias-down signal at 10:15. Exiting the open under 2385.75 would be unlikely to trigger the 2388.00 bias-up signal.