The First Trade & Pre-open Tour Recording… Stretching and pushing it.

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…
Sunday night’s rally had all but peaked nearly 4 hours before the open. Touching, testing and probing 2634.00 had reacted down to 2626.00-2627.00 each time. One final time through Monday’s open also reacted down, but much more substantially to 2602.00. That was the morning’s bias environment. Recovering into and out of the afternoon bias environment extended sharply higher to 2662.50, probing above Friday afternoon’s ~2650.00 high. Friday morning’s 2658.50 high was still being tested at the close.

Overnight action’s new info…
Monday afternoon’s rally soon resumed after the Globex open. And it has only extended higher, including an Ascending Triangle at 2672.50 that resolved up to 2678.50 through Europe’s opens. Now a fresh high attacking 2680.00 has reacted down to test and retest 2672.50 as support.

If, then…
The reward to recovering yesterday morning’s high was a retest of Friday afternoon’s ~2650.00 high. And the reward to recovering that is a retest of two prior highs up to 2691.50. That was more than 40 points higher when 2650.00 was being tested, and now it’s only 12 points higher. The recovery is already 94 points above Friday’s late low, which is a little faster-paced for the rally than for the decline. The differential isn’t wide enough to label the rally as a “bear market bounce,” but surging beyond the open would could make the afternoon vulnerable to reversal. However, a post-open dip would be difficult to resume the rally if not absorbed quickly.

First Trade…
[Click here to view the Bias parameters] Exiting the open at 9:45 above 2675.00 would be likely also to exceed the 2671.00 bias-up target at 10:15 to renew the bias-up signal.