The First Trade… Standing up to terrorism.

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…
Gapping down Friday to 2037.00 didn’t hesitate extending down to 2023.00. Consolidating there resolved up into a noon hour bounce back to the 2037.00 open. But that was Friday’s last and only bounce, as the balance of the session trended down, putting into play 2012.00, and potentially 2007.50. The final hour was spent piercing and probing the 2017.00 area.

Overnight action’s new info…
Headlines from Paris crossed in time to trigger another downleg to 2012.00. The weekend’s fuller revelations triggered a gap down Sunday to 2006.50. The opening bar also touched 1998.50, but the balance of the night trended back up. Europe’s opens were greeted  from just under the 2017.00 area, and the reaction extended back into positive territory, up to 2024.50. Ranging back down to 2019.00 has also attacked 2026.00.

If, then…
Crass thought it may be, the market ultimately trades on only earnings and liquidity. Even then, much more so on the latter. The emotional reactions are discounted and the market moves on. That applies equally to Sunday night’s open, as to gapping up too much in reaction. The decline’s 2012.00 target hasn’t been met intraday, but still could be, especially if the open doesn’t recover resistance. Friday morning’s ~2023.00 “higher prior low” is natural resistance, and it is being tested. Opening back under Friday’s 2017.00 last-hour low could extend to retest the overnight low entirely.

First Trade…
Exiting the open at 9:45 above 2029.00 would be likely to trigger the 2027.00 bias-up signal at 10:15. Exiting the open under 2020.25 would be unlikely to trigger bias-up. Exiting the open under 2013.50 would be likely to trigger the 2017.00 bias-down signal.