The First Trade… More than one way not to skin a cat.

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 open had to put up, or shut-up. Recall that Monday afternoon”s buyers hadn”t gained traction for their efforts and the afternoon”s 2099.75 bias-up target had been met. So Tuesday morning wasn”t going to extend Monday”s rally without gapping up. And Tuesday”s open didn”t gap up. The open”s dip to 2093.75 was recovered to 2100.00, filling the gap back up to Monday”s close. The balance of the session trended down to probe just under the morning”s low attacking 2090.00.

Overnight action”s new info…
Last night”s flat narrow open eventually surged up to 2098.00, perhaps because China wasn”t crashing another 10% at its open. The balance of the night has trended down, fulfilling Tuesday afternoon”s potential to 2088.00. Eventually plunging through it to 2085.00 triggered a 7-1/2 point reaction up. A fresh low at 2084.00 has reacted up 7 points. That”s a lot of choppiness for just several hours, all centered around 2088.00.

If, then…
Despite trending down throughout, Tuesday afternoon”s sellers didn”t gain traction for their efforts in the same way that Monday”s buyers had failed to entrench their rally. The afternoon bias environment”s exit at 2:30 was within the noon hour”s range, and the final hour”s entry at 3:00 was within the bias environment”s range. Similarly, gapping down is the only way to extend Tuesday afternoon”s decline. Here is where the examples may diverge, because a gap down IS currently indicated. But the gap must be maintained to indicate that new sponsorship has actually arrived. And “lower prior highs” around 2088.00 can still cause a gap down to reverse sharply.

First Trade…
Exiting the open at 9:45 above 2088.00 would be unlikely to trigger the 2086.00 bias-down signal at 10:15. Exiting the open under 2083.50 would be likely to trigger bias-down. Exiting the open above 2099.25 would be likely to trigger the 2096.25 bias-up signal.