The First Trade… Another overnight warning shot.

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

CHARTROOM LINK(s)
o Win XP-Friendly entry
o non-xp friendly (ilinc)
(pre-open Market Tour begins at 8:55 ET)

Through the prior close…
Sunday night’s rally to 2095.00 had suggested the rally was ready to resume. But a pre-open dive fell to 2083.25 through Monday’s open. And that extended down to 2080.25 through the morning. An afternoon rally stopped 1 tick short of retaking control above 2088.00, and the balance of the afternoon reacted down to test its 2079.00 objective.

Overnight action’s new info…
Actually, the 2079.00 objective was met before Monday’s last half-hour began. That left ample opportunity to extend down. Not exploiting it had made an overnight rally likely to attack Monday afternoon’s 2086.00-2088.00 highs. In fact, they were being probed into and out of the Globex open, extending to attack 2093.00. Too much, too soon, as that was retraced by 61.8% down to 2083.50. Its recovery up to 2090.00 is now dipping back into the 2086.00-2088.00 range as support.

If, then…
Reversing down overnight doesn’t change the rally’s signal for resuming, which is to open to and/or through 2086.00-2088.00. In fact, the overnight rally’s 61.8% retracement down to 2083.50 is constructive. And the overnight pessimism is potentially bullish from a contrarian perspective, following two consecutive overnight rallies that evaporated at the open. All of which the open must exploit immediately, or else find another window remains open to attacking last week’s lows.

First Trade…
Exiting the open at 9:45 above 2088.00 would be likely to trigger the 2086.00 bias-up signal at 10:15. Exiting the open under 2084.50 would be unlikely to trigger bias-up.