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 didn”t produce the recovery that the pattern suggested would be likely after temporarily extending Friday afternoon”s decline down to 2044.50. The decline extended temporarily Sunday night, but its recovery was held to a break-even at 2051.50. The afternoon”s lower low down to 2036.50 didn”t gain traction wither, recovering back into the overnight range. “Unfinished business above” at 2055.75 was created by the morning”s no-bias environment. So, sellers didn”t gain traction despite trying, while buyers created a higher target without really trying.

Overnight action”s new info…
Narrow ranging at 2043.50-2046.00 had firmed to almost 2048.00 ahead of Europe”s opens. A dip to 2041.00 was recovered back to the initial range”s upper-end. Then Europe blinked — news (i.e. trial balloon) of a 6-month extension for Greece just triggered a 12-point, 12-minute surge to 2059.00.

If, then…
The attraction to unfinished business above at 2055.75 is now neutralized. Thursday”s cash session and futures closes (2055.50-2057.50) represent last week”s high close, and they”re now being retested as resistance. These are all resistance, and trending up will be difficult without entering a timing window above them. Don”t forget the pattern of trial balloon headline, market reaction that gauges its acceptance, then actual details. This morning”s headline may be valid, but it has yet to be validated, which will be treated as an separate news item.

First Trade…
Exiting the open at 9:45 above 2053.00 would be likely also to exceed the 2055.75 bias-up target through 10:15 to renew the bias-up signal. Exiting the open under 2050.75 would be unlikely to trigger the 2049.00 bias-up signal.