The First Trade… Backing-and-falling.

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…
Rallying Monday depended on rallying quickly. Opening at 2098.00 just above Friday”s lows instead quickly collapsed to retest the 2093.00 overnight lows. Not only were overnight lows retested, but they were probed down to 2089.50. Recovering back up to 2098.00 was reversed even more substantially down to 2080.00. The afternoon”s consolidation formed a large triangle that broke higher to 2091.50. Potential down to 2077.00 was ignored, and the relevant 2084.00 level held on a closing basis.

Overnight action”s new info…
Sideways ranging got choppy into Europe”s opens. A dip to 2085.00 was recovered to 2093.50. That has been retraced gradually, and entirely, now probing fresh lows attacking 2084.00.

If, then…
Just putting into play yesterday”s 2088.00 bias-down target was likely also to visit 2084.00, and potentially 2077.00. Having probed 2084.00, closing back above it suggests that the decline is ending, and not just getting underway. Gapping open under 2084.00 could contradict its recovery, at least putting into play 2077.00. By the same token, confirming yesterday”s recovery by maintaining positive territory through any timing window would launch a complete retracement back up to prior highs.

First Trade…
Exiting the open at 9:45 under 2084.00 would be likely to trigger the 2086.50 bias-up signal at 10:15. Exiting the open above 2088.00 would be unlikely to trigger bias-down.