The First Trade… Sunny side up.

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…
Thursday’s gap up above Wednesday’s tractionless rally enabled the rally to probe higher without bearish consequence. As for utilizing that ability, not so much. An 8-point reaction down from 2162.00 was recovered entirely into the noon hour’s 2163.50 peak, just short of the 2164.25 overnight high. Anxiousness ahead of Friday’s Employment Situation report inhibited trending higher. Another 8-point drop in the afternoon ended at 2158.00-2159.00. No traction was gained, but “unfinished business below” was left outstanding at 2150.50.

Overnight action’s new info…
Thursday afternoon’s 8-point drop from 2163.50 was recovered entirely by midnight, where it awaited Europe’s opens. That triggered a surge to fresh high at 2165.25, which had been Thursday afternoon’s bias-up signal, so resistance. Its 4-point reaction back down to the surge’s origin is now being recovered.

If, then…
Yesterday’s price action suggested the market wants to respond bullishly to this morning’s Employment Situation report, regardless of the week’s “unfinished business below.”. Trending up relentlessly overnight doesn’t change that intent, but it increases the consequences of not reacting bullishly to the news. No traction was gained yesterday, so maintaining a gap open Friday beyond either end of Thursday’s 2154.00-2164.00 range would be likely to trend in that direction. If down, then unfinished business below would be in-play at 2150.50 and 2141.50. Any rally would be likely to extend to retest Sunday night’s 2177.75 “new Globex trend extreme.”.

First Trade…
[Click here to view the Bias parameters] No preliminary levels are available before an Employment Situation report.