The First Trade & Pre-open Tour Recording… Back-and-fill-and-rally-again.

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

DAILY SCHEDULE
First, watch the pre-open Tour recording HERE <<==
Then, meet in the chaRTroom here by 9:15 ET for updates and Q&A

Through the prior close…
Tuesday’s open was greeted by a 48-point relentless slide that fulfilled the required retest of the recent 2712.25 low. The open almost immediately extended the decline down to 2692.25 during the session’s first hour. The balance of the session trended back up to eventually touch 2754.00 — still in negative territory about 3 points short of unchanged. The position-squaring window dropped back down to 2738.75.

Overnight action’s new info…
Ranging sideways through midnight held Tuesday’s late 2738.75 low as support and found resistance at 2748.00-2750.00. Europe’s opens were greeted by trending to and through 2732.00 on the way to 2719.75. Now a reaction up is testing 2732.00.

If, then… (notes to accompany the Tour recording)
Closing back above Tuesday’s 2721.00-2723.25 opening highs creates a position of strength. Extending higher immediately was unlikely, as I explained during yesterday’s Market Wrap. The likely targets for a corrective dip were 2735.50, 2721.00-2723.25, 2715.50 or even down to 2701.50. Dipping to 2719.75 qualifies as a test of 2721.00-2723.25. This creates a new challenge, since its support test yesterday afternoon already launched its own upleg. So, either the rally will now resume into the open by first recovering 2735.50, or a fresh overnight low will next target 2715.50 or even down to 2701.50. Any lower would start to signal that Tuesday’s intraday bounce was self-fulfilling, its position of strength was being invalidated, and that the decline was resuming.

First Trade…
[Click here to view the Bias parameters] Exiting the open at 9:45 above 2735.50 would be unlikely to trigger the 2734.75 bias-down signal at 10:15. Exiting the open under 2729.50 would be likely to trigger bias-up.