The First Trade… Santa’s back in town.

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

CHARTROOM LINK(s)
o Win XP-Friendly entry
o non-xp friendly (ilinc)
(pre-open Market Tour begins at 8:55 ET)

Through the prior close…
My, how quickly times change. The holiday break ended yesterday by trending down Sunday night from 2052.00 to almost 2040.00. Monday’s open was greeted by a bounce attacking the morning’s 2047.00 bias-down signal as resistance. It was too shallow to reverse the overnight trending, but high enough to refuel sellers. The drop extended through the morning to attack 2035.00. The balance of the session trended back up to close above the morning’s high, but too late and by too little to assure trending higher.

Overnight action’s new info…
Not signaling a trend reversal doesn’t prevent it. Firming to test 2051.00 and then 2052.00 retested Thursday’s close. Europe’s opens triggered a surge touching Thursday’s 2059.75 high. Now a pullback is attacking 2055.00.

If, then…
Cleanly recovering yesterday morning’s high through the close would have targeted the interim decline’s origin, which is Thursday’s high. Testing an objective not yet put it into-play can be more difficult to extend through it. Yesterday’s recovery attempt didn’t gain traction for its effort, so maintaining a gap up would be entirely credible for extending higher intraday.

First Trade…
Exiting the open at 9:45 above 2054.25 would be likely to trigger the 2050.50 bias-up signal at 10:15. Exiting the open above 2059.00 would be likely to renew the bias-up signal by also exceeding the 2056.25 bias-up target through 10:15.