The First Trade… Big plunge touches our target.

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…
Monday”s pre-open bounce became a post-open plunge, from 2115.00 down to 2100.25. Despite not yet fulfilling the morning”s 2098.50 bias-down target, another bounce fulfilled the afternoon”s 2118.00 bias-up target. Then a shallower plunge ended the day by testing 2109.00, with no unfinished business above, and the morning”s unmet bias-down target outstanding below.

Overnight action”s new info…
Significant overnight action leads me to publish today”s First Trade much earlier than usual… Flat-to-lower ranging overnight had twice held 2112.00 resistance. Price began weakening at Europe”s opens, eventually cascading down to 2094.00. I”m going to go out on a limb here… Greece headline? Yep, Greek voters pushing back on austerity plans. Anyway, the reaction up from 2094.00 consolidated at yesterday morning”s 2100.25 low, and is now climbing higher to 2103.50.

If, then…
Just touching 2112.00 Friday had made last Tuesday”s 2096.00 low likely to be probed by 2-3 points. Last night”s plunge to 2094.00 neutralizes that attraction. But if a rally doesn”t exploit this vulnerability early, then a much more substantial decline will be underway.

First Trade…
Exiting the open above 2108.50 would be unlikely to trigger the 2106.50 bias-down signal at 10:15. Exiting the open at 9:45 above 2101.50 would be likely to recover the 2098.50 bias-down target in time to avoid renewing the bias-down signal. Exiting the open under 2093.00 would be unlikely to recover the 2098.50 bias-down target, renewing the bias-down signal and putting 2078.75-2081.25 into play.