The First Trade… Wake-up call.

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…
Gapping down 9 points from 1910.00 in reaction to Friday’s pre-open Employment Situation report only worsened throughout the day. The net effect was to revisit the recent range’s lower-end around 1865.00. Only one week earlier, probing above the same range’s upper-end had triggered a breakout, which wasn’t confirmed on Monday. Sellers gained no traction for their effort, despite the afternoon probing fresh session lows.

Overnight action’s new info…
Sunday night’s firm open extended higher to attack 1884.00. Dropping to 1877.00 was recovered to probe 1884.00, only to drop back down to 1877.00. One more bounce was the final bounce, suddenly plunging 39 points to attack 1845.00.

If, then…
Stopping optimistically shot of prior lows Friday didn’t resolve down immediately. Gapping down may not extend immediately. If The earlier hesitation and the overnight bounce suggest that gapping down could attract more optimism. The next lower relevant support is at 1849.00, now being tested, and its disposition through the open could define the morning’s trend.

First Trade…
Exiting the open at 9:45 above 1856.50 would be likely also to test the 1862.75 bias-down target as resistance. Exiting the open under 1848.00 would be likely to extend down through the bias environment.