The First Trade… Island Hopping.

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…
Sunday night”s slide extended down to fresh lows at 2056.50 through Monday”s open. Recovering back above the 2063.50 opening print to attack 2070.00 was retraced back to the morning”s low. A last-minute surge recovered 2063.50 through the close, extending higher to 2065.00.

Overnight action”s new info…
Monday”s last-minute surge firmed further to attack 2067.00 but dipped back to 2063.50 while China”s crash resumed. Then it un-resumed, encouraging a bigger bounce that extended to 2077.00. Ranging flat-to-higher has held 2071.00 as support, while briefly probing fresh highs above 2078.00.

If, then…
Since yesterday afternoon”s sellers didn”t gain, dipping only between timing windows, the decline became vulnerable to correcting. Gapping up too shallowly would produce only a brief correction that would soon resume trending down to the 2051.00 target in-play. But gapping up well into Friday afternoon”s 2070.00-2077.00 range could form a longer-lasting Island reversal. Overnight action has retraced that range, and can now either sustain it to begin a multi-session corrective bounce. Maintaining the gap up wouldn”t necessarily extend much higher yet this morning. Not maintaining the gap could become a massive “outside day” that could fulfill the lower target.

First Trade…
Exiting the open at 9:45 above 2077.00 would be likely also exceed the 2073.00 bias-up target at 10:15 to renew the bias-up signal, next targeting 2080.50. Exiting the open under 2071.25 would be unlikely to renew the bias-up signal at 10:15. Exiting the open under 2065.00 would be unlikely to trigger the 2067.50 bias-up signal at 10:15.