The First Trade… Getting the heck out of Dodge.

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…
Tuesday morning”s no-bias environment tested its 2095.50 bias-up signal before being dragged down into the afternoon to 2081.50. Bouncing back up to 2090.00 still managed only barely to close above the relevant 2084.00 and avoid putting into play 2077.00. But it was an “inside day” that had little predictive value, apart from leaving oversold RSIs outstanding at the low which require a retest.

Overnight action”s new info…
After ending the day at Tuesday”s lows, overnight rallying is attacking Tuesday”s highs. Initially attacking Tuesday”s 2081.50 low to within 3 ticks has since trended back up, eventually probing above Tuesday”s late 2090.00 high, and the afternoon bias environment”s 2092.25 high, now within 1 tick of yesterday”s 2096.25 high.

If, then…
Fresh lows testing 2077.00 become more likely as a recovery is delayed. And the vulnerability increases for gapping down. So, it”s fitting that the vulnerability below can be neutralized by gapping up — above Tuesday afternoon”s 2092.50 high. Greeting the cash session from within Tuesday afternoon”s range would still be vulnerable to trending down intraday. And having rallied so strongly and relentlessly overnight, the biggest threat to a rally is if new sponsorship isn”t attracted after expending so much energy overnight.

First Trade…
Exiting the open at 9:45 above 2092.50 would be likely to trigger the 2091.00 bias-up signal at 10:15. Exiting the open above 2099.25 would be likely also to exceed the 2098.50 bias-up target at 10:15 to renew the bias-up signal. Exiting the open under 2088.00 would be unlikely to trigger bias-up.