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”s pre-open Employment Situation report was greeted from Thursday”s test of targets above 2052.00. The knee-jerk reaction up held only through the opening ticks up to 2061.00 before plunging 30 points to 2031.00. But downtrending was isolated only the morning”s bias environment. The balance of the session bounced up to 2047.00, which reacted down to 2038.00 into the cash session close.

Overnight action”s new info…
Friday”s late reaction down to 2038.00 had extended to almost 2033.00 after the cash session close. Sunday night”s open retraced that last leg momentarily. Rallying into Europe”s opens has extended higher, retracing the rest of Friday”s late decline from 2047.00.

If, then…
As we discussed during this weekend”s Saturday Review, Friday”s singular isolated downleg did not necessarily prove that last week”s correction had ended. Immediately retracing Friday”s late decline — as is currently indicated — would further undermine the correction scenario. The open is still 90 minutes away. And even the scenario for resuming the rally would still allow this morning to retest Friday”s lows first.

First Trade…
Exiting the open at 9:45 above 2044.00 would be likely also to trigger the 2045.00 bias-up signal 30 minutes later at the 10:15 bias timing window. Exiting the open under 2037.00 would be unlikely to trigger bias-up.