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

CHARTROOM LINK <<==click here (pre-open Market Tour begins at 8:55 ET)

Through the prior close... A positive knee-jerk reaction attacking 1965.00 was triggered by Friday's pre-open Employment Situation report. But it pierced overnight highs only a little, and only momentarily. Already retracing into the 1947.00 open still tested both bias-up parameters, before rejecting them to put into play tests of both bias-down parameters. The morning bias environment's new lows at 1924.50 were retraced into the noon hour, but Friday's last half-hour still capitulated down to 1910.00. Overnight action's new info... Hope springs eternal, indeed. Sunday night's open had plunged down to 1983.50 into China's open. That was retraced entirely to greet Europe's opens flat with Friday's close. The overnight recovery attempt helped to mute the effects of Friday's plunge, and the recovery turned positive up to 1928.50. Its reaction down to 1914.00 is still maintaining positive territory. If, then... The overnight low stopped 12 points short of its potential to 1881.00, which would be the objective on a retest. A retest of the overnight low does remain possible, and likely, so long as Friday afternoon's 1938.50 bias environment high isn't recovered. Attacking it up to 1933.50 would be the optimal corrective bounce, expending as much buying pressure as possible without even beginning to gain any traction for the effort. But already greeting the open anywhere near unchanged around 1912.00 would be likelier just to resume the decline. First Trade... Exiting the open at 9:45 above 1928.75 would be likely also to exceed the 1927.25 bias-up target at 10:15, renewing the bias-up signal next targeting 1933.50. Exiting the open under 1923.00 would be unlikely to renew the bias-up signal. Exiting the open at 9:45 under 1912.75 would be unlikely to trigger the 1921.00 bias-up signal at 10:15.

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Opening strength evaporates entirely. The pre-open recovery to the 1928.50 overnight high was pierced up to 1929.00 through the open. That's 15 points above Friday's cash session close. And it's all optimism. Any higher would have gotten a benefit of the doubt for renewing the bias-up. Instead, back under 1924.25 signaled momentum reversing down, falling to a fresh low at 1912.25. Only momentarily overlapping negative territory has kept the door open to another bounce. In fact, an 11-point bounce just touched 1923.25. The eternal springing of hope is astonishing. Having said that, this is a no-bias environment that rejected tests of both bias-up parameters, putting into play offsetting tests of both bias-down parameters at 1907.00 and 1899.75.

MON afternoon signal (triggered at 1:20 ET) SPX ES Bias-up: above  1928.00 1920.25 ...would target  1933.50 1926.50 Bias-down: under  1914.75  1907.75 ...would target 1907.00  1899.75 Signal status: BIAS-DOWN 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.

Optimists learning at a glacial pace. At least this morning's gap up reversed down immediately. So, optimists are getting a little smarter. Not much, though. Friday's gap was a little slower to reverse down, but not much. And prior gaps up had extended higher more and more briefly before reversing down. Negative territory was probed earlier this morning than Friday. But not much. The bias environment had not yet ended today, but Friday's drop dragged it out before failing. There's some sort of a pattern there. The learning curve doesn't advance simply by shortening distance between the usual inflection points. Rather, the curve stops repeating, and disappears altogether -- replaced by a period of trending more consistently and at a steeper slope. Unfinished business below at this morning's 1899.75 bias-down target is now this afternoon's bias-down target. Probing fresh post-open lows during the noon hour would start to suggest the pattern is shifting to post-optimism. Somehow rallying would suggest something much more substantial underway to the upside.

The 18-point bounce from retesting overnight lows had held its 1910.00 resistance. It had retraced down to 1897.00 -- 4-1/2 points back to the low. Sellers had not gained traction since the bias environment was exited within the noon hour's range, and the final hour was entered there, too. But that didn't precluded extending down. And it didn't enable a bounce. A big, humongous bounce. Yet, that's what followed. The timing was not appropriate for strong-handed sponsorship, but a 26-point rally touched 1923.00. That's positive territory. Or, it was. A reaction down into the close ended the day flat. It seems like success for a bottoming attempt -- probe a new low, and recover its retest. But timing is everything, timing like origins and closes, and they suggest the decline has chipped away at support more than formed a base. Nevertheless, neither buyers nor sellers gained traction for their efforts. So, gapping open either way Tuesday could be credible for extending in that direction intraday -- whether above 1933.50 or 1943.50, or under 1899.00 or 1894.50. Details and other markets coverage are discussed in the post-market Wrap recording here.

Monitor overnight Globex trading in the chaRTroom here.

TUE morning signal (triggered at 10:15 ET) SPX ES Bias-up: above  1933.50 1927.25 ...would target  1940.50  1933.50 Bias-down: under  1913.50  1906.50 ...would target 1906.25  1899.00 Signal status: noN-BIAS, TESTED BOTH BIAS-UP PARAMETERS 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.