The First Trade… Back to last week’s highs.

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”s gap up extended higher to touch the upper-end of its renewed bias-up target at 2095.25-2097.50. Not exceeding it through a relevant timing window prevented putting into play any higher objective. The afternoon ranged choppily back down to 2092.00. A post-close drop extended down to 2089.25.

Overnight action”s new info…
The rally”s resumption was immediate, slowing pessimistically upon attacking Monday”s highs, and then surging through them to a fresh high. That was extended to 2105.25, within 1 tick of last Wednesday”s high. Its reaction retraced 61.8% of the overnight gain back down to 2095.25, consolidating almost three hours back up to 2101.00.

If, then…
Last Wednesday”s late break was considered to be sponsored by weak hands, and it was retraced entirely Thursday. Friday”s much deeper drop was also considered to be weak-handed, and now that has been retraced entirely. Weak-handed sponsorship can produce detours, which by definition are only temporary. New highs remain likely, potentially today, if another detour doesn”t appear. Today, that vulnerability is probably limited to the open holding a test of last week”s highs, if not also falling back under yesterday”s highs

First Trade…
Exiting the open at 9:45 abov 2105.50 would be likely also to renew the bias-up signal by exceeding its 2104.00 bias-up target through 10:15. Exiting the open under 2095.25 would be unlikely to trigger the 2098.25 bias-up signal at 10:15.