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…
This week”s correction into the FOMC events had been delayed by absorbing a couple of rogue downlegs that wanted to retest the decline”s 2069.00 objective. So, the template shifted forward to become a correction into and also out of FOMC. The minimum target of probing fresh session highs at 2009.50-2012.00 was mostly fulfilled up to 2011.00 after the knee-jerk selling had run its course during Yellen”s Q&A. But it stopped pessimistically short of neutralizing the attraction to overbought RSIs at Tuesday”s high just 1 tick higher. And being an inside day, the bullish WedEX signal had to be labeled “passive.”

Overnight action”s new info…
Pessimism is potentially bullish from a contrarian perspective. Yesterday”s last-minute pessimism has been that, and more… Narrow ranging finally broke higher one hour before Europe”s opens, fulfilling the correction”s next higher objective at 2020.00. Its reaction down resumed the rally soon after Europe”s opens, already probing 6 points above the correction”s likelier 2030.00 objective — which  is now serving as support.

If, then…
Gapping up so strongly today won”t make this upleg any likelier to extend higher durably. But it might allow reconsidering whether it is only a temporary correction. A lot of room has been created to absorb selling pressure before it can damage the recovery effort. But gapping up — and by so much — does create a vulnerability to reversing back down this morning.

First Trade…
Today”s bias parameters are far below this morning”s indicated open. Nevertheless, exiting the open at 9:45 under 2023.00 would threaten not to maintain recovery above this morning”s 2018.25 bias-up target through 10:15, which wouldn”t renew the bias-up signal.