The First Trade… Dip, recover, repeat, faster!

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

Enter the Chartroom here
(pre-open Market Tour begins at 8:55 ET)

Through the prior close…
For the second consecutive session Wednesday, the prior day”s late drop was retraced entirely by an opening surge. Also, retracing that immediate recovery was also recovered, again. And once again, despite absorbing two sell-offs, prior highs were not probed — the range persists. No unfinished business was left outstanding, and neither buyers nor sellers gained traction for their efforts.

Overnight action”s new info…
Post-close earnings misses from AA and BBBY didn”t prevent Initially firming a couple of points to 2078.00. But sliding from there eventually reached 2073.00. After firming into Europe”s opens, the decline resumed with a steeper slide to 2067.25. The last several hours have retraced it all back up to 2077.50.

If, then…
Absorbing dips is potentially constructive. Potentially. Waiting too long before exploiting that potential can become vulnerable to yet another dip gaining traction. Delaying the latest dip this time until overnight is being met by accelerating its recovery to precede the open. Potential for resuming the rally remains alive, and the only proof more constructive than last night”s round trip would be to actually resume the uptrend. The vulnerability to another dip gaining traction remains alive, too, especially if there”s any further delay to resuming the rally after recovering last night”s dip.

First Trade…
Exiting the open at 9:45 above 2077.50 would be unlikely to trigger the 2071.25 bias-down signal at 10:15. Exiting the open above 2082.50 would be likely to trigger the 2081.25 bias-up signal.