The First Trade… Defense.

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 session rode the wave of the combination of follow-through from Friday’s inverted session-long setup and from that afternoon’s buyers gaining traction. That, and having closed Friday at the 1942.00 objective without rejecting it, then already testing the next higher 1960.00 objective overnight without rejecting it. But only hovering up to 1980.00 beyond the afternoon bias environment’s exit prevented buyers from gaining new traction.

Overnight action’s new info…
Gapping down to 1971.00-1973.00 initially bounced to 1975.25, but then trended down through Europe’s opens to 1963.50. A bounce to 1973.00 has been retraced 61.8% back down to 1967.25.

If, then…
The rally had become extended without gaining traction, making a pullback likely if today’s open doesn’t gap up above yesterday’s highs. That’s not impossible from a 10-15 point discount two hours before the open. And it’s not very very difficult in this wide-ranging environment. But gapping up is unlikely after having traded at a deficit throughout the entire night. Nevertheless, opening above the overnight highs could still probe above yesterday’s highs temporarily..

First Trade…
Exiting the open at 9:45 above 1976.00 would be unlikely to trigger the 1972.00 bias-down signal at 10:15. Exiting the open under 1970.25 would be likely to trigger bias-down.  Exiting the open under 1965.00 would be a little likelier also to exceed the 1964.00 bias-down target through 10:15 to renew the bias-down signal, next targeting 1956.00.