The First Trade… Sellers starting early.

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…
Sunday night’s rally hadn’t skipped a beat since Thursday’s pre-Easter weekend close, extending the intraday rally to attack 2040.00. That was retraced entirely before Monday’s open, which the morning extended back down to 2022.00, retracing 61.8% of the rally from Thursday morning’s 2012.00 low. No relevant supports were broken, but sellers weren’t trapped. Bouncing to 2034.00 during the afternoon’s no-bias environment was retraced to 2027.00, closing back under Thursday’s highs.

Overnight action’s new info…
Relatively narrow choppy ranging back to 2033.50 suddenly launched a drop down to 2023.50. It might be in reaction to a plane hijacking, which it being reported as a domestic dispute. RSIs diverged into the low, but the drop seems pretty slow retracing since learning the hijacking is confined.

If, then…
With no unfinished business above, the open has little excuse to further delay resuming the pullback begun off of last week’s highs. A “session-long decline” setup isn’t possible, but gapping down under yesterday morning’s lows would likely set a bearish tone for the day. By the same token, threatening to gap down, but avoiding it anyway, should at least retest Sunday night’s high.

First Trade…
Exiting the open at 9:45 above 2027.00 would be unlikely to trigger the 2024.50 bias-down signal at 10:15. Exiting the open under 2022.00 would be likely to trigger bias-down.