The First Trade… Just reward.

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 gap down had been recovered into positive territory before Monday’s open, a pre-open dip was recovered to higher highs. The morning’s bias environment contained one last correction, before marginalizing sellers for the balance of the session. The afternoon’s 31-point upleg up to 2051.00 gained traction.

Overnight action’s new info…
Flat-to-higher ranging had dipped into Europe’s opens. But that only launched another upleg to 2059.25. It was preceded by a dip down to 2055.00, and followed by a reaction down to 2055.00. That formed a Head & Shoulders which is now probing lower under 2054.00.

If, then…
A reward is due for gaining traction. That’s usually delivered by the next morning extending the trend. But when last-hour and/or overnight timing windows have already extended the trend, the risk is that fully-rewarded buyers become sellers. And that risk is greeting today’s open. An overnight pullback to 2035.00 would have helped to secure a morning rally. Yesterday afternoon’s 2041.25 renewed bias-up target was being met as the bias environment began lapsing. It was extended 10 more points into the close, and now at least 8 more points overnight to 2059.25. That’s 30 points since yesterday afternoon’s 2029.00 buy signal. None of which is a sell signal, and this upleg still has room to 2068.00. A pre-open pullback could suffice in place of an overnight pullback. Otherwise, not extending higher immediately post-open would be vulnerable to inverting back down.

First Trade…
Exiting the open at 9:45 above 2058.00 would be likely also to exceed the 2055.75 bias-up target at 10:15 to renew the bias-up signal. Exiting the open under 2051.00 would be unlikely to renew bias-up. Exiting the open under 2048.00 would be unlikely to trigger the 2050.00 bias-up signal.