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…
Monday”s opening dip to 1944.50 simply extended the overnight slide that had been underway since soon after Europe”s opens. But it didn”t extend very far or for very long. Not that it launched a recovery — the balance of the session ranged back to Friday”s cash session close equivalent at 1958.00. Rising bottoms formed an intraday Ascending Triangle. The afternoon”s bias-up signal trigger, and wasn”t invalidated despite an hour spent probing under it. Left unmet, the 1960.25 bias-up target became “unfinished business above.”

Overnight action”s new info…
Narrow ranging at 1958.00 firmed after midnight to fulfill the outstanding 1960.25 objective. Ranging narrowly around it ended suddenly at Europe”s opens, surging to 1963.50 and 1964.50, and then almost spiking up to 1969.00. The three hours since then have formed a Symmetrical Triangle.

If, then…
Yesterday afternoon”s discussions centered around the “ineffectual pessimism” of not rejecting the upside target, despite having more than ample opportunity. Buyers had gained no traction, so the only way to extend higher immediately today would be to gap up. So, gapping up would be likely because of the “unfinished business above.” There is no assurance of maintaining the 9-point overnight rally, but it does create a lot of room to absorb a corrective dip before the open. I noted during yesterday”s Market Tour, one of today”s bullish templates is a gap up through 1963.50 that runs to 1984.00. It”s even likelier now, so long as the gap up isn”t reversed entirely through the open.

First Trade…
Exiting the open at 9:45 above 1963.50 would be likely also to trigger the 1961.00 bias-up signal at 10:15. Exiting the open above 1970.50 would be likely also to renew the bias-up signal by exceeding its 1967.25 bias-up target through 10:15.