The First Trade… Round-two.

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…
Understatement of the decade: Friday’s open gapped down sharply. But its 2031.50 opening print was well above the overnight limit-down at 1999.00. Rallying through the first half-hour attacked 2065.00, then the balance of the session trended back down. The final hour’s blip-down under the open’s low to 2022.25 reacted up stunningly to 2040.00. Even more stunningly, the cash session’s last 10 minutes were reversed down to 2026.50, extending to fresh lows at 2016.25.

Overnight action’s new info…
Sunday night’s open gapped down to 2014.00 and slide further to 2001.50. Flat-to-higher ignored China devaluing the Yuan again, soon firming back up to the opening print. And then through it, overlapping Friday afternoon’s cash session low by 2 points. Firming through Europe’s opens touched 2022.50 and has reversed down since then, now testing 2005.00 .

If, then…
Thursday night’s 1999.00 limit-down halt requires a retest, probably down to 1993.50, with further potential down to 1980.00. There’s not much time available to isolate the fresh lows by satisfying the retest and already recovering into positive territory pre-open. Not isolating fresh lows would be trickier to form a trading low this morning, with a negative close today confirming a trend change.

First Trade…
[Click here to view the Bias parameters] Exiting the open at 9:45 under 2004.50 would be likely also to exceed the 2008.00 bias-down target at 10:15, renewing the bias-down signal. Exiting the open under 2013.25 would be likely at least to trigger the 2018.75 bias-down signal.