The First Trade… Raining AND pouring.

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 plunge to 1960.00 did a relatively small portion of what Friday had been vulnerable to throughout the day. Monday”s session was vulnerable to extending down further, but only attacked the overnight low. At least the entire session was spent in negative territory, and its sellers gained traction for their efforts.

Overnight action”s new info…
Empathizing with China crashing again helped to deliver the rest of what Friday had been vulnerable to — by dropping 31 points to test 1931.00. Consolidating there has broken lower to 1919.50, where a bounce is probing back above 1931.00.

If, then…
We discussed during yesterday”s post-market Wrap that seasonal bullishness surrounding Labor Day weekend all but required resuming the decline without delay, or else it would be delayed until next week. As powerful as the overnight plunge is, there is still a small window to reverse momentum back up. Just gapping down to 1938.00 would form a sort of Island from Thu-Mon price action. Not the sort of Island that requires being retested, but which resumes the prevailing trend. Room for noise under 1938.00 down to 1934.00 must both maintain their breaks through today”s open to maintain the overnight plunge”s momentum. Otherwise, momentum can be pointed back upward for the balance of the morning.

First Trade…
The market is far below this morning”s bias parameters.