The First Trade… Bubbling over.

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…
Gapping down Tuesday within Monday afternoon’s range wasn’t likely to extend down, and was likelier to recover. Which it did, bouncing through the morning from 2019.50 to 2031.50. That was also essentially a move from one bias signal to the other. Being a no-bias environment with plenty of time remaining, price reversed back down into the afternoon’s bias environment. Retesting the morning’s low initially held, reacting up to 2027.00. But that reacted back down into the close.

Overnight action’s new info…
The closing reaction down extended quickly to 2015.75, 3 ticks under Monday’s low. Then a steep rally into and out of midnight touched 2034.25. Its reaction down to 2020.50 was reversed back up to 2031.75, which essentially repeated Tuesday morning’s rally (both circled green on the chart).

If, then…
An early surge to fresh highs and that reacts down as quickly and as sharply, that’s the topping template we’ve been monitoring in this area. Yesterday’s post-open surge and its reaction back down almost fit, except that its timing followed an early dip. Last night’s surge and reaction down almost fit, too, except for being last night and not intraday. An early post-open surge that quickly reverses down would be credible for extending down intraday. But not rejecting an early surge could put the next higher objective in-play at 2055.00.

First Trade…
Exiting the open at 9:45 above 2027.50 would be likely also to trigger the 2026.25 bias-up signal at 10:15. Exiting the open under 2023.00 would be unlikely to trigger bias-up.