The First Trade… Indicating a gap up.

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’s wide-ranging choppy morning had remained range bound, narrowing between 2065.00-2075.00. Firming into the final hour hovered above the morning’s high, but didn’t improve above 2079.00. The morning’s 2062.75 bias-down target was left outstanding below.

Overnight action’s new info…
Perhaps it’s a slow news day due to the holiday. But price has only ratcheted higher in stages. One leg up consolidated off of testing 2080.50, and another timed to Europe’s opens peaked at 2084.50. Its reaction down tested 2080.50 as support, before surging to fresh highs that blipped-up momentarily to touch 2087.00.

If, then…
2080.50 is this morning’s bias-up signal, and 2086.00 is its target. Both have been tested overnight. Impressive, but less relevant than their post-open disposition — especially after singularly-minded overnight trending. Recovering both to renew the bias-up could marginalize sellers for the day, as counter-trend sponsorship is inhibited by holiday-depressed volume. But while countering a trend is difficult, so is getting it started. Holding one or both bias-up parameter’s test could put into play a lower objective. And that same counter-trend inhibition could facilitate the influence of lower attractions.

First Trade…
Exiting the open at 9:45 under 2083.50 would be unlikely to exceed 2086.00 bias-up target at 10:15 whose recovery would have renewed the bias-up signal. Exiting the open above 2088.75 would be likely to renew the bias-up. Exiting the open under 2076.00 would be unlikely to trigger the 2080.50 bias-up signal at 10:15.