The First Trade… Testing the highs.

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 night’s “new Globex trend extreme” at 2098.50 had reacted down into Tuesday’s open, and then attacked to within 3 ticks at the morning’s high. Its intraday retest remains outstanding. The noon hour’s dip to 2085.00 in the same pattern we saw at Friday afternoon’s low, giving us very early anticipation for a reaction target of 2095.50 that was met at the close. The rally failed to gain traction for its efforts.

Overnight action’s new info…
With near-term buying pressure satisfied, the Globex open immediately began trending down. The reversal extended relentlessly into Europe’s opens before bottoming at 2086.00. A recovery eventually began, and it is now probing yesterday’s highs up to 2098.00.

If, then…
Having failed to gain traction for yesterday afternoon’s efforts, the rally can extend higher this morning only by gapping up. Retracing all of the overnight drop is encouraging, and opening above the “new Globex trend extreme” at 2098.50 would be more promising. But in either case, the opening 15 minutes must still extend to higher maintain momentum. Otherwise, probing under yesterday’s lows would not be surprising.

First Trade…
Exiting the open at 9:45 above 2098.50 would be likely to trigger the 2096.25 bias-up signal at 10:15. Exiting the open under 2093.75 would be unlikely to trigger bias-up.