The First Trade… The wind-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…
Friday morning’s gap down tried extending, more in terms of points than in time. The open contained the 2172.50 bottom, 12 points off of Thursday’s highs. The morning’s bounce to 2181.50 had reacted down to enter Friday afternoon’s bias environment at 2176.50. Trending up to fresh session highs at 2183.00 was entirely consistent with a bullish WedEX. No unfinished business was left outstanding.

Overnight action’s new info…
Europe’s opens once again provided a paradigm shift in overnight price action. Sunday night’s flat open had soon begun sliding, eventually retracing back down to Friday afternoon’s bias environment entry at 2176.50. Blipping-down 1 point deeper at Europe’s opens only stretched the rubber band to snap back up. Thursday’s highs were retested up to 2184.50. That paradigm shift isn’t yet necessarily tectonic — its reaction back down into negative territory is testing 2178.00

If, then…
This weekend’s Saturday Review described the potential for retesting last week’s 2188.50-2190.50 highs, before a durable downleg could begin. Last night’s choppy overnight range requires opinions to be pressed, and defended. Recovering the overnight dip and reversing to probe Friday’s highs suggests buyers are percolating. Friday’s bullish WedEX performance enhances this morning’s opportunity to push price higher, regardless of the afternoon’s resolution. Gapping down under Friday afternoon’s 2175.75 low may be the only way to start trending down this morning.

First Trade…
[Click here to view the Bias parameters] Exiting the open at 9:45 above 2180.50 would be unlikely to trigger the 2176.00 bias-down signal at 10:15. Exiting the open under 2174.25 would be likely to trigger bias-down.