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…
Wednesday”s gap down held its bias-down signal. The offsetting test of its bias-up signal was fulfilled at the morning”s 2046.25 high, which probed 2 points into positive territory. Consolidating back into negative territory at 2036.00 never gained traction. In fact, rallying out of the bias environment”s exit came to within 2-3 ticks of the afternoon”s 2049.75 target. Having originated too late to be strong-handed, and having fulfilled buying pressure, negative ECB-Greece news triggered a 20-point plunge to fresh session lows attacking 2030.00 before the close.

Overnight action”s new info…
The plunge extended down immediately to 2022.50. Sideways ranging between 2021.00-2027.50 formed an Inverted Head & Shoulders. The pattern broke higher into Europe”s opens. Yesterday morning”s 2046.25 was just attacked to within 1 tick.

If, then…
The plunge began too late to invalidate the relevant action of two consecutive mornings that had rejected sellers. The recovery I described during Market Wrap is exceeding my minimum expectation for 2041.00. It may have gotten ahead of itself by already testing this morning”s 2044.50 bias-up target. But the potential for extending higher still outweighs the trend reversing down.

First Trade…
Exiting the open at 9:45 above 2042.00 is likely also to exceed the 2044.50 bias-up target through 10:15 to renew the bias-up signal. Exiting the open under 2034.00 would be unlikely to trigger the 2038.25 bias-up.