The First Trade.

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

Through the prior close…
Greeting the new week with extreme sentiment is often a sentiment extreme. Monday”s open was. But the morning”s rally from gapping down at 1957.00 expended too much energy too quickly to gain traction. The morning bias environment”s 1972.75 peak was retraced 10 points into the afternoon bias environment”s to 1962.75 low. That dip held a test of the noon hour”s low to prevent sellers from gaining traction (sellers failed an attempt to gain traction). That dip also recovered to probe the morning”s high up to 1974.00 through the 3:10-3:20 timing window (buyers did gain traction). Another dip into the close fell to 1968.00.

Overnight action’s new info…
Narrow ranging until midnight finally resumed Monday”s recovery. A consolidation up retesting 1974.00 broke higher to 1977.50 where another consolidation has formed.

If, then…
If Monday”s recovery were going to extend any higher Tuesday, then it was likely to begin by gapping considerably. Overnight action indicates a gap up above yesterday”s highs and above Friday”s close. That”s a start. But testing the bias-up signal without triggering it would target negative territory, and be vulnerable to probing yesterday”s lows.

First Trade…
Exiting the open at 9:45 above 1977.00 would be likely also to trigger the 1975.75 bias-up signal at 10:15. Exiting the open under 1972.25 would be unlikely to trigger bias-up, and under 1970.00 at 9:45 would be likely also to trigger the 1964.50 bias-down signal at 10:15.