The First Trade… More of the same.

Proper context can start the day with a solid win and make all the difference.

CHARTROOM LINK
(pre-open Market Tour begins at 8:55 ET)

Through the prior close…
Last week left one piece of “unfinished business above” .at 2175.50. That’s 3 points above Thursday’s high. The context of there being unfinished business above means that Friday’s slide to 2159.00 is a temporary detour. Its session low filled the gap back down to last Wednesday’s close, and held it. No other unfinished business was left outstanding.

Overnight action’s new info…
Relatively narrow ranging at Sunday night’s open offered a false calm. But then price slipped under Friday’s lows to test 2152.00. Fueled by what appears to be Deutsche Bank’s final chapter seems to have begun, with a bailout being dismissed by political leadership, Europe’s opens triggered a plunge that attacked 2144.00. A double bottom there enabled a bounce to 2149.00, which is struggling to improve any further.

If, then…
Extending Friday’s drop intraday would have next targeted at least 2149.00. So, 2149.00 now serving now as resistance overnight suggests the drop is an extension of the same sponsorship much more so than it may be a new leg. Extending down any deeper intraday would next target “lower prior highs” down to 2143.50, which were attacked to within 1 point overnight. Room below it to 2138.00 can be tested before suggesting that unfinished business above at 2175.50 won’t be tested soon. Meanwhile exiting the weekend with extreme sentiment is often a sentiment extreme, and the open is vulnerable to absorbing and rejecting the drop and reversing it back up sharply.

First Trade…
[Click here to view the Bias parameters] Exiting the open at 9:45 under 2146.00 would be likely also to exceed the 2149.00 bias-down target at 10:15 to renew the bias-down signal, next targeting 2143.50. Exiting the open under 2152.00 would be likely to trigger the 2155.00 bias-down signal at 10:15.