The First Trade… Probing lower.

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…
You don’t see that everyday. I’m not referring to Monday’s gap down, or to holding two tests of Friday’s 2079.50 low, which avoided triggering bias-down. But higher targets were invalidated upon exiting the bias environment under the open’s lows. And that was despite fresh post-10:15 highs confirming the higher targets, piercing positive territory up to 2089.25. The balance of the session trended down to 2068.75.

Overnight action’s new info…
Monday’s slide kept its pace and slid to 2064.00. Bouncing back to 2071.75 was already giving way ahead of Europe’s opens. Fresh lows down to 2060.25 are being retraced now up to 2067.25.

If, then…
The decline’s next lower target at 2063.50 was put into play. It has been influential overnight, initially attacking it to within 3 ticks, and then probing it temporarily by 3 points. This action can form an isolation setup if post-open action avoids probing negative territory. No influential econ reports are scheduled, and FOMC’s policy statement isn’t until tomorrow — neither of which is necessarily bullish or bearish, but they could otherwise be catalysts for sparking counter-trend action. Without already reversing up this morning, the decline could extend toward or to 2043.00.

First Trade…
[Click here to view the Bias parameters] Exiting the open at 9:45 above 2070.75 would be unlikely to trigger the 2068.25 bias-down signal at 10:15. Exiting the open under 2064.50 would be likely to trigger bias-down. Exiting the open under 2060.50 would be unlikely to recover the 2062.50 bias-down target at 10:15, which would renew the bias-down signal next targeting 2057.50 and 2053.00.