The First Trade…. Holding pattern patter.

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…
Wednesday”s open resumed and extended the overnight rally, renewing the bias-up signal, and testing the 2105.50 renewed bias-up target to 2107.00. That ended with the morning bias environment”s exit, which began a 15-point slide to 2091.00 into the afternoon bias environment”s entry. A corrective bounce to 2098.50 resumed sliding into the close, leaving the afternoon”s 2088.75 bias-down target outstanding.

Overnight action”s new info…
The late slide extended to within 1 tick of Wednesday”s low at 2091.00. Bouncing 5 points to test 2096.00 in positive territory retraced the slide by 61.8%. Its reaction down has held 2092.00.

If, then…
Wednesday afternoon”s corrective bounce was intended to restart the decline so it could fulfill unfinished business below at the afternoon”s 2088.75 bias-down target. That could have been neutralized overnight by testing it, or neutralized overnight by rallying back above Wednesday afternoon”s highs. Not doing either makes the decline likely to resume this morning, still capable of holding a test of 2088.75, but not as likely — and now it is also this morning”s bias-down signal.

First Trade…
This morning”s preliminary signals don”t seem very informative. Exiting the open at 9:45 under 2088.00 would be likely to trigger the 2088.75 bias-down signal at 10:15. Exiting the open above 2097.50 would be unlikely to trigger bias-down.