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)*

*POWER OUTAGE HAS ME AND THE CHARTROOM OFFLINE.  I'LL SEND AN EMAIL ALERT WHEN AVAILABLE. THANKS FOR YOUR PATIENCE! Through the prior close... More than being maintained, Monday's gap up above prior highs trended upward to 2132.50 through the opening 15 minutes of volatility. This setup essentially marginalizes sellers from retaking control. But it doesn't necessarily prevent downdrafts, like the post-open dip back to Friday's 2125.50 high. Its touch reacted up aggressively to attack 2137.00 through the noon hour. Ranging choppily into the final hour didn't gain traction, letting the day end by dipping to 2129.00. Overnight action's new info... Choppy ranging was resisted by 2132.50 until breaking higher ahead of Europe's opens. That became a surge through Monday's highs testing 2138.00. A 4-point correction resolved up to fresh highs at 2141.50. If, then... At least one eventual new high close is required because Friday's breakout was confirmed by Monday's second consecutive higher close. That need not be today, but the "unfinished business above" does make it more difficult to reject a gap up. Reacting down from attacking, fulfilling or probing the 2143.00 objective might not be avoided, but it would likely be recovered. First Trade... [Click here to view the Bias parameters] Exiting the opening 15 minutes of volatility above 2143.00 would be likely also to exceed the 2141.00 bias-up target through 10:15 to renew the bias-up signal. Exiting the open above 2137.50 would be likely to trigger the 2135.00 bias-up signal at 10:15.

Rally's next objective met, holding. The open was greeted by a a 4-hour channel ranging around this morning's 2141.00 bias-up target. Immediately breaking higher extended to 2145.25, neutralizing the rally's next higher objective at 2143.00. The entire opening 15 minutes of volatility trended up 4-1/2 points. Price action since then has only trended down 7 points, and just attacked 2138.00.

While the reversal down has dipped deeper and lasted longer, it can't change history. And trending higher after gapping up created an anchor to prevent a reversal down from gaining traction.

That doesn't prevent attempting to trend down. The bias-up target held through 10:15 to avoid renewing the bias-up signal. But this is still a bias-up environment. Dipping during it has room down to the 2135.00 bias-up signal without even threatening to reverse the trend down. Back above 2142.50 would start to signal the dip had ended and the rally was resuming. Meanwhile, further backing-and-filling through the morning or later remains possible.

TUE afternoon signal (triggered at 1:20 ET) SPX ES Bias-up: above  2155.00  2148.00 ...would target  2161.75  2155.00 Bias-down: under  2147.00 2140.25 ...would target  2142.00  2135.00 Signal status: NO-BIAS, TESTED BIAS-UP SIGNAL 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.

Noon hour's highs have yet to extend. We discussed after yesterday's close how the session's specific contradictory signals were suggesting a very wide-ranging session today. Already swinging widely this morning doesn't mean that's necessarily done. Neither does already fulfilling the 2143.00 objective, and its room for noise above that begins at 2147.25.

Today's pattern has so far duplicated yesterday's -- Reacting down from a gap up, then recovering to new highs during the noon hour, triggering no-bias. Similar setups that appear sequentially should resolve differently. Yesterday afternoon only range sideways, so today should either reverse down, or else extend up.

That latter option is problematic. Being a no-bias environment, trending up would be "no-bias trending" that is doomed to failure. The noon hour has created a Complex Ascending Triangle pattern that can function as a Double Top reversal.

Fresh highs could test 2151.25-2152.75 before reversing down. And having stretched the rubber band, that would reverse down substantially if the rally doesn't intend to put higher targets into play. A shallower reversal down could still recover 2143.00 through the close to create higher objectives. Reversing down first isn't required, or reversing down from only slightly higher highs -- but that would be likelier to dip only briefly.

There was much too much similarity between Monday and Tuesday's patterns. Similar patterns that appear sequentially tend to resolve differently. But Tuesday was Monday's doppelganger. So, it was a second consecutive session for not gaining traction. This time, the afternoon hovered optimistically throughout. Wednesday is vulnerable to the same intraday gyration and resolution as was Tuesday. Meanwhile, an up/down-crash count has emerged. It's at least 10 consecutive trending sessions, with 1-2 non-consecutive counter-trend sessions. S&Ps don't fit the set-up neatly, but NDX and the Dow are there. Closing above 2143.00 puts into play the next higher objective, which could reach 2168.00. Of course, that's subject to a second consecutive higher confirming close Wednesday, And the second session of B\limited afternoon volatility isn't helping. Details and other markets coverage are discussed in the post-market Wrap recording here.

Monitor overnight Globex trading in the chaRTroom here.

WED morning signal (triggered at 10:15 ET) SPX ES Bias-up: above  2156.00  2149.25 ...would target  2161.00  2154.25 Bias-down: under  2147.75 2141.00 ...would target  2141.50  2134.75 Signal status: NO-BIAS, TESTED BIAS-UP 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.