The First Trade… Holding yesterday afternoon’s range.

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…
The Turkey-Russia event triggered a gap down Tuesday to 2071.00, which soon extended back down to within 6 ticks of the 2065.50 overnight lows. Despite the seasonal timing that allowed more time to decline, the selling was limited to the morning’s bias environment. It was reversed through the noon hour back into positive territory up to 2091.00. The balance of the session ranged sideways back down to 2084.00.

Overnight action’s new info…
A late-afternoon sell signal triggered under 2087.50 had targeted at least 2082.50. Meeting it early overnight held, as did its retest. The second reaction up extended to probe above yesterday’s highs to 2092.50. That has dipped back down to test 2088.00.

If, then…
Yesterday morning’s deep pullback was optimistically brief, so it may be too soon for a rally attempt to be credible. Retesting yesterday’s lows may be unlikely, but that depth isn’t required to remain in corrective mode. The pattern remains vulnerable to spending the day backing-and-filling, trading flat-to-lower, and not trending higher. That said, trending higher from gapping up would get a benefit of the doubt for extending on volume too low to attract counter-trend sponsorship.

First Trade…
Exiting the open at 9:45 above 2091.00 would be likely to trigger the 2088.00 bias-up signal at 10:15. Exiting the open under 2084.50 would be unlikely to trigger the 2088.00 bias-up signal. Exiting the open under 2077.00 would be likely to trigger the 2079.75 bias-down signal.