The First Trade… Correxit?

Proper context can start the day with a solid win and make all the difference.

CHARTROOM LINK
(pre-open Market Tour begins at 8:55 ET)

Through the prior close…
Gapping down a little Friday to 2068.00 extended down a lot to the morning’s 2053.25 low. The balance of the session “rallied” to 2065.25 in a series of higher highs and higher lows, albeit never leaving negative territory. The last hour dipped a little and then a lot to eventually touch 2057.75. That was still 2 points too high to consider WedEX.fulfilled its bearish signal.

Overnight action’s new info…
Poll results showed the Brexit “remain” support rising sharply. Sunday night’s open gapped up to 2071.00 and extended steadily overnight up to 2087.50. That’s back to last Friday’s close, which last Monday morning had probed only momentarily before extending the prior week’s decline.

If, then…
Has the rally’s corrective phase been exited, or is the overnight rally refueling sellers? The potential rally we discussed this weekend has been triggered by a favorable poll, and not by simply delaying the Brexit vote. Anti-Brexit forces had regained so much ground so quickly, that its sponsors would be foolish to delay the vote. So, the rally gets the best of both worlds. And knows it. Two questions now are whether the rally extends intraday, as the bearish WedEX influence arrives at the open. Trending down from the open should be obvious early, or it won’t be relevant.

First Trade…
[Click here to view the Bias parameters] The bias-up parameters are far below current ranging. However, exiting the open at 9:45 above 2089.25 would be likely to extend higher this morning. Exiting the open under 2079.50 would be likelier to trend back down.