The First Trade… Wearing Santa’s elves thin.

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…
Surging into greeted Tuesday’s open too optimistic after forming a Rising Wedge minutes earlier. The reaction down from 2024.00 to 2010.50 still triggered bias-up. The balance of the session trended back up to the pre-open high, and higher. Outside potential to the 2035.00 area triggered a 9-point reaction down that recovered to 2031.00 at the cash session close, and 2036.50 at the futures close. Buyers gained traction for their efforts.

Overnight action’s new info…
Dipping shallowly back to 2031.00 waited until Europe’s opens before resuming the rally. Trending up since then has extended to 2045.50.

If, then…
Gaining traction through yesterday afternoon’s checkpoints should reward buyers by also probing higher during this morning’s bias environment. That can be inverted if overnight action has already been rewarding. That’s determined by whether the open holds the test of a relevant resistance — be it calculable like the 2043.00 bias-up target, or structural like 2046.75 that was the last relative high, or that last relative high’s 2038.50 prior low. Seasonal bullishness is helpful to extend a rally, but extending it too quickly can eventually be helpful to attracting shorts.

First Trade…
Exiting the open at 9:45 above 2046.00 would be likely to renew the bias-up signal by exceeding the 2043.00 bias-up target at 10:15. Exiting the open at 9:45 above 2038.50 would be likely to trigger the 2035.00 bias-up signal at 10:15.