The First Trade.

Proper context can start the day with a solid win and make all the difference.

Enter the Chartroom here (pre-open Market Tour begins at 8:55 ET)

Through the prior close…
Friday morning”s expiration rally began by gapping up. The afternoon”s bearish WedEX influence sent price back down to within 1 tick of post-open lows. Bouncing into the close only corrected the afternoon drop by retracing 61.8% of it to close at 1880.00. WedEX”s bearish influence seemed to be intact.

Overnight action”s new info…
Sunday night”s open gapped up to extend Friday afternoon”s bounce. Friday morning”s 1891.75 high was probed up to 1893.50. Eventually dipping back down to 1882.00 into Europe”s opens.Hovering optimistically short of Friday”s 1880.00 close gave way into IBM”s earnings miss, attacking 1873.00.

If, then…
Retracing last night”s gap up, and also beginning to retrace Friday”s last bounce, is all irrelevant to the bearish WedEX. The signal expects the morning to trend down post-open, regardless of overnight action trending up or down, or all around. It is informative that the overnight high did peak at this morning”s 1893.00 bias-up target, and it is now struggling to hold this morning”s 1874.00 bias-down signal.

First Trade…
Exiting the open at 9:45 under 1871.00 would be likely also to trigger the 1874.00 bias-down signal at 10:15. Exiting the open above 1888.00 would make the 1885.25 bias-up signal likely to trigger.