The First Trade… Pushing higher.

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…
Third time was a charm. Okay, fourth. Like Monday and Tuesday before it, Wednesday gapped up to 2140.00 and tried probing higher. Unlike Monday and Tuesday before it, Wednesday’s intraday reaction down to 2132.00 was recovered, and the retry was very successful. It helped to get the FOMC statement out of the way. As did the attraction to last Monday’s highs around 2152.25-2153.25. Probing it up to 2157.50 before the close gained traction, and took RSIs overbought.

Overnight action’s new info…
The potential if not likely pullback under 2153.25 never got underway, as the support was only overlapped by 2 ticks before Europe’s opens. Their response to yesterday’s rally encouraged a breakout from the shallow range. Fresh highs are now testing 2164.00.

If, then…
Having neutralized the attraction above back to last Monday’s highs, the recovery’s momentum is in search of a new objective. Yesterday afternoon’s rally had gained traction, but was also rewarded well enough to enable an overnight corrective dip. No dip, no correction, and no refueling to help sustain the stretched rubber band. Maintaining a gap up could extend higher this morning, but even that would remain vulnerable to reversing down sharply this afternoon.

First Trade…
[Click here to view the Bias parameters] Exiting the open at 9:45 above 2167.00 would be likely also to exceed the 2165.50 bias-up target at 10:15 to renew the bias-up signal. Exiting the open above 2162.50 would be likely to trigger the 2160.00 bias-up signal. Exiting the open under 2159.00 would be unlikely to trigger bias-up.