The First Trade… Back to square (-1).

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 1938.25 low had probed under Friday’s low before reversing well into positive territory. Monday’s gap up extended higher to probe above Friday’s intraday highs up to 1969.00. When the bias environment lapsed at 11:30, so did the bullish WedEX influence, unable to prevent a noon hour slide to 1944.25. The afternoon rallied back to 1961.25, but didn’t gain traction for the effort.

Overnight action’s new info…
Globex firmed a little further to 1965.00 before retracing to 1958.00. Sideways ranging had dipped back to its lower-end into Europe’s opens. The bottom literally dropped out as a three-hour plunge fell to 1928.25.

If, then…
There’s no bullish reason to be retesting the same 1945.00 pullback limit that had stemmed Thursday night’s plunge. It also trapped Friday’s late low, and Monday’s noon hour low, both being intraday tests. It’s a different challenge to gap down under 1945.00. And gapping under 1938.00 would break the “lower prior highs” from which 1945.00 is derived. The next lower attraction would be 1918.00; under 1915.00 would target 1899.00. It’s possible this sell-off has become exacerbated ahead of this evening’s Yom Kippur observance, and its afternoon liquidity drain. Exiting the open above 1949.00 would suggest the selling has been limited to overnight action, opening the door to revisit last week’s highs.

First Trade…
Exiting the open at 9:45 back above 1945.00 would be the best chance at recovering the 1948.00 bias-down target in time to avoid renewing the bias-down signal.