The First Trade… Taking another shot.

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…
Monday’s gap up at 2139.00 extended quickly to attack 2147.00, consolidating around 2143.00 into the noon hour. A sudden 8-point plunge was followed by an 8-point slide back into Friday’s range at 2128.00 for the afternoon low. Bouncing back to the 2139.00 open was reversed back down to 2130.00, preventing 2134.00 from being recovered through the close. Overbought RSIs were left outstanding at 2146.75.

Overnight action’s new info…
Initially choppy, price gradually firmed to greet Europe’s opens back at Monday afternoon’s 2139.00 high. Consolidating there has broken higher to touch 2142.00.

If, then…
Despite falling short of it yesterday, a more substantial correction of Monday’s noon hour plunge up to 2141.50 had been likely. The overnight bounce has neutralized its test. So long as Tuesday’s open isn’t already reversing the overnight rally, then a retest of Monday morning’s overbought RSIs at 2146.75 is also likely. And that would have potential for extending to test last Monday’s upper-end around 2150.50. Opening flat-to-lower would be unlikely to resume the overnight rally, but not any more likely to reverse down sharply. Trending beyond the week-old range is still unlikely with BOJ and Fed statements looming.

First Trade…
[Click here to view the Bias parameters] Exiting the open at 9:45 above 2143.00 would be likely to trigger the 2140.50 bias-up signal at 10:15. Exiting the open under 2137.50 would be unlikely to trigger bias-up.