The First Trade… Sitting? Duck.

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

CHARTROOM LINK(s)
o New! Omnistream
o Anymeeting backup
(pre-open Market Tour begins at 8:55 ET)

Through the prior close…
Thursday gapped down, as had Wednesday. Thursday’s post-open rally peaked sooner than had Wednesday’s. Despite having been higher, it was reversed under the open’s low sooner. Buyers were learning to exit sooner. The afternoon did not recover. Buyers were learning to be patient. But only one traction factor triggered. Buyers still had not been conditioned to become sellers.

Overnight action’s new info…
Firming 5 points out of the Globex open soon surged 25 points into China’s open. It never extended higher. Hovering choppily at the highs — even through Europe’s opens — eventually did retrace all but 3 points of the gain.

If, then…
Last-minute sentiment before influential reports can be predictive from a contrarian perspective. So, did last night’s initial 25-point surge reflect optimism, or was it actually inhibited by pessimism? A little of both. Gapping up enough could trend higher intraday. But the trend is otherwise down, and not reacting up high enough for long enough would be likely to resume the decline.

First Trade…
Preliminary levels aren’t calculated ahead of the Employment Situation report.