The First Trade… Back to work. (The work of a corrective bounce.)

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…
But for the morning’s momentary probe above Monday’s 1980.00 high, Tuesday was an “inside day,” contained entirely within Monday’s range. It might have seemed more substantial in the moment, being under pressure the entire day. But that was the expectation for the day before it even began, and the session didn’t deviate from its purpose. The afternoon’s fluctuation did not reflect buyers or sellers gaining traction.

Overnight action’s new info…
Tuesday’s lows were probed down to 1960.50 in reaction to high-profile earnings misses (setting the stage for the quarterly earnings onslaught?). The balance of the night rallied back to and through Tuesday’s high to 1985.50. A pullback into yesterday’s range at 1975.50 is now trying to resume the rally, currently testing 1980.00.

If, then…
The rally need not resume without delay, but it must resume on its first intraday attempt. The overnight action provides a template — probing fresh highs, pulling back into the range, and then… Post-open action can duplicates this overnight pattern, either extending the rally attempt immediately, or following a pullback into the range. But pulling back too deeply, before upside momentum is re-established, would be vulnerable to launching a new downleg to probe under overnight lows.

First Trade…
Exiting the open at 9:45 above 1981.00 would be likely also to exceed the 1981.00 bias-up target (same level as each other) at 10:15 to renew the bias-up signal. Exiting the open under 1974.00 would be unlikely to trigger the 1976.00 bias-up signal at 10:15.