The First Trade… This time might catch.

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 “inside day” had a lot of swings like its overnight action. But its range was narrower, not testing either bias signal intraday. And it barely avoided ending unchanged except for a late break down to 2044.00. Still, two dry cleaners windows — both the morning and afternoon bias environments — make that late break dubious, despite it extending to a fresh session extreme before coming to within 3 minutes of the cash session close.

Overnight action’s new info…
Another wide-ranging overnight session… second time’s a charm? Monday’s late break immediately began bouncing, until a couple of tests of 2047.50 launched a new downleg. It stopped 2 points short of its potential to 2039.50 of the false break that I described yesterday. But price action has otherwise tracked the pattern perfectly, launching a rally at Europe’s opens which has extended up to 2053.00.

If, then…
The next element of the recovery setup we discussed yesterday is to gap up above Monday’s 2054.00-2056.00 highs. Quickly probing them would be credible, too. Just beware the risk of yesterday’s two dry cleaners windows being followed by a third. Avoiding that paralysis could produce a session-long rally today. Last night’s reversal may be different from Sunday night in one important way, by not greeting the open unchanged, at a starting stop.

First Trade…
[Click here to view the Bias parameters] Exiting the open at 9:45 above 2054.00 would be likely to trigger the 2053.25 bias-up signal at 10:15. Exiting the open under 2050.50would be less likely to trigger bias-up.