The First Trade… Still ticking.

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…
Recall that Friday’s gap up had reacted down to test Thursday’s “lower prior highs” down to 1834.00. Its test held, and the balance of the session trended up relentlessly to test 1860.00.

Overnight action’s new info…
Sunday night’s open gapped up 5 points and had extended to 1890.00 by Monday morning. Its reaction down to 1880.00 was recovered up to 1885.00 at the noon hour Globex close. Monday night’s open rallied again, probing fresh highs up to 1892.75. That, too, reacted down — testing Monday’s reaction lows down to 1878.00, and up to 1885.00.

If, then…
Friday’s buyers had gained traction for their efforts. Sunday night and Monday night’s highs could easily qualify as their reward. But will it hold this morning, let alone extend higher? Holiday trading isn’t often duplicated on its second day, and Friday’s pre-holiday trending is often counter-trend. Nevertheless, not rejecting the interim rally would make higher highs likely, up to 1907.00 and 1920.00 before a new downleg would be credible.

First Trade…
Bias Parameters have been updated from those published at Friday’s close. Exiting the open at 9:45 above 1883.00 would be unlikely to trigger the 1878.50 bias-down signal at 10:15. Exiting the open under 1875.50 would be likely to trigger bias-down. Exiting the open above 1889.25 would be likely to trigger the 1885.00 bias-up signal.