The First Trade… Not backing down.

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 gap up extended immediately through 2032.00-2033.00 resistance and fulfilled potential to 2041.50. An 11-point dip reacted up 16 points to attack 2046.00. But the probe of fresh session highs failed, as did its retest, before the close dipped back down toward session lows.

Overnight action’s new info…
Gradually ratcheting up to attack yesterday’s highs, a single probe higher has touched 2050.50. Its initial reaction down to test 2046.00 is now extending deeper to attack 2044.00.

If, then…
Yesterday’s rally gained no traction for its effort. Extending higher today would require gapping up above yesterday’s highs. Extending higher without gapping up is still possible, but then very likely to trend back down — especially if 2052.00 had been tested already. Trending at all this morning isn’t likely with this afternoon’s FOMC policy statement looming.

First Trade…
Exiting the open at 9:45 above 2044.00 would be likely to trigger the 2041.00 bias-up signal at 10:15. Exiting the open above 2051.25 would be likely to renew the bias-up signal by also exceeding its 2048.00 bias-up target at 10:15. Exiting the open under 2034.25 would be unlikely to trigger bias-up.