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

Enter the Chartroom here (pre-open Market Tour begins at 8:55 ET)

Through the prior close...
Except for a drop through the noon hour, Thursday''s session rallied higher through the day. And that followed gapping up to retrace most of Wednesday''s late plunge, which had extended even lower overnight. Although the bias environment exit and final hour''s entry reflected no momentum, the last half-hour surged to almost touch the 2059.00 upper-end to the ongoing channel.

Overnight action''s new info...
Thursday''s last half-hour surge was gradually retraced before midnight. That retracement was gradually recovered into and out of Europe''s opens. A shallower dip has been recovered, too, forming an Ascending Triangle with two hours still remaining before monthly payrolls is announced.

If, then...
The market''s underlying upward bias seems strong enough to absorb an initially negative knee-jerk reaction to this morning''s pre-open Employment Situation report. But it might not be strong enough to maintain an initially favorable reaction, since yesterday afternoon''s key timing windows lacked traction. The Friday Factor may be more relevant today than any other influence.

First Trade...
No preliminary levels are considered ahead of an Employment Situation report. These will be updated during the pre-open Market Tour.

The trend is your friend... until it''s not.

This week''s pervasive optimism enabled a favorable reaction to the pre-open Employment Situation report. The 2064.50 bias-up target defined the reaction''s ultimate pre-open high. 

The reaction down had room to test 2057.50-2058.25 ("X" on the chart image), filling the gap back to yesterday''s cash session close. It reacted up once, and then held two later tests, helping the 2059.00 bias-up signal to trigger easily.

In fact, the bias-up target was being retested at 10:15. Retested, but not exceeded. The bias-up signal is not renewed. This is still a bias-up environment, and fresh highs were probed up to 2068.00.

Now the bias environment''s lapsing at 11:30 is coming within view 10-15 minutes out. The bias-up influence can be overcome. Testing 2060.00-2062.00 into the bias environment exit or noon hour exit would be postured to extend down well into negative territory through the afternoon.

Otherwise, the post-open recovery can continue drifting higher, next targeting 2071.25. This being a Friday, the morning''s bias tends to persist through the noon hour. So, reversing down is less likely, and more difficult to recover if being done.

FRI afternoon signal (triggered at 1:20 ET) SPX ES Bias-up: above 2072.50
2067.50
...would target 2077.00
2072.00
Bias-down: under 2063.00
2058.00
...would target 2058.25
2053.25
Signal status: LATE BIAS-DOWN, TESTED BIAS-DOWN TARGET FAQ INTRO VIDEOS #1 and #2

1. At 1:20, trading above the bias-up signal or under the bias-down signal would put into play a test of its bias-up or bias-down target.
2. Not triggering either bias signal at 1:20 would be "no-bias," and the bias signals should define the bias environment''s range.
-- A test of the opposite bias signal would be targeted if one bias signal was tested before triggering no-bias.
3. Touching the bias signal within 3 minutes either way of 1:20 would invoke a grace period through 1:30 to trigger a late signal.
-- "Late" signals don''t require testing the opposite bias signal, but it''s still likely.
4. Still testing the bias signal at 1:30 after invoking the grace period would trigger "noN-bias," with no bias influence.

A daily summary of high-profile members of several complexes... View a more detailed discussion of each chart at the end of today''s Market Wrap.

Eurodollar Mar Contract (EC, ETF: (FXE))
The reaction to Friday''s pre-open Employment report exploited Thursday''s failure to exceed the gap back to Tuesday''s close that it had filled intraday. Wednesday''s post-close dip under 1.1400 support had been probed down to 1.1395, but that became resistance during Friday''s reaction down that extended down sharply to 1.1315.

Gold Apr Contract (GC, ETF: (GLD))
Thursday''s choppy sideways ranging proved to be hesitation ahead of Friday''s Employment report, when the reaction plunged to eventually fulfill this leg''s 1231.80-1236.70 target. The target range was very influential once probed. The eventual 1185.00-1195.00 target remains intact so long as bounces now hold 1244.50-1246.00.

Silver Mar Contract (SI, ETF: (SLV))
Friday''s reaction to the Employment report plunged to and through recent lows to test 16.55. The interim high was very distributive, all but requiring this leg to extend. That would be suspect if not already extending further down through Monday morning.

30-year Treasury Mar Contract (US, ETF: (TLT))
Thursday''s 148-24/149-16 inside day proved to be only hesitation ahead of the Employment Situation report, which triggered a plunge to almost 147-00. An eventual third lower close had become required three weeks earlier, forecasting also that the interim rally to 158-28 resistance would fail. There is now no new requirement, unless Friday''s breakout were confirmed by a second consecutive lower close Monday.

Crude Oil Mar Contract (CL, ETF: (USO, UWTI))
With the rally being free to resume, Friday''s improvement above 51.50 resistance helps to confirm the recovery''s momentum remains intact. Not closing above Tuesday''s 52.85 close after filling its gap does make the pattern vulnerable to another downdraft. But any fresh highs Monday would be credible for resuming the rally.

Natural Gas Mar Contract (NG, ETF: (UNG, UNL))
Closing above 2.70 is the nearest buy signal to be considered, so long as Friday''s close had left Thursday''s range. But too much of the session was devoted to ranging narrowly at the lows, so an immediate recovery Monday wouldn''t be credible.

If the NFP reaction were initially down... then its recovery would have prevented the afternoon''s drop. The afternoon might have extended much higher already. And that optimism would be expended, instead of ending the week pessimistically discounting bad news..

Pattern points... (Setups and technicals)
The week''s pervasive optimism was identified throughout by the timing of its post-open dips that recovered to fresh session highs. Friday''s reaction to the Employment Situation report underscored that optimism. But despite trending down into the close, optimism''s back isn''t yet broken.

That''s the point of probing a fresh high -- it creates room to absorb selling pressure without damaging the trend. And Friday''s probe of fresh highs held up well into the noon hour before reversing down. Through Friday afternoon. The least relevant window of the week.

So, Friday''s reversal down was substantial, and its sellers gained traction for their effort (exiting the bias environment under the noon hour''s low, and entering the final hour under the bias environment''s low). But the drop''s minimum 2044.00 target was met to within 2-3 ticks. The 2041.00 lower-end of the target range could or should be met, too. But until a relevant window breaks below it, last week''s rally is likely to resume.

Even then, not holding 2041.00 would target another 12 points lower. If the pullback must extend that deeply before resuming the rally. then its test should be well underway Sunday night. Any deeper pullback than that could prevent resuming the recovery, since new lows would be in-play.

What''s Next... (Outlook and opportunities)
The weekend''s Saturday Review begins at 9:30am ET, and I''ll send a reminder in the morning. Click here to log-in up to a half-hour before the event.

MON morning signal (triggered at 10:15 ET) SPX ES Bias-up: above 2060.75
2055.75
...would target 2066.00
2062.25
Bias-down: under 2048.75
2044.00
...would target 2044.00
2039.00
Signal status: NO-BIAS, TESTED BIAS-DOWN SIGNAL FAQ INTRO VIDEOS #1 and #2

1. At 10:15, trading above the bias-up signal or under the bias-down signal would put into play a test of its bias-up or bias-down target.
2. Not triggering either bias signal at 10:15 would be "no-bias," and the bias signals should define the bias environment''s range.
-- A test of the opposite bias signal would be targeted if one bias signal was tested before triggering no-bias.
3. Touching the bias signal within 3 minutes either way of 10:15 would invoke a grace period through 10:30 to trigger a late signal.
-- "Late" signals don''t require testing the opposite bias signal, but it''s still likely.
4. Still testing the bias signal at 10:30 after invoking the grace period would trigger "noN-bias," with no bias influence.