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

DAILY SCHEDULE First, watch the pre-open Tour recording HERE <<== Then, meet in the chaRTroom here by 9:15 ET for updates and Q&A

Through the prior close... Friday morning's news of the Trump investigation getting a scalp triggered 43-point collapse from 2649.00. It quickly fulfilled its potential at the morning's 2605.00 low. Headline-triggered moves are usually retraced entirely to their origin. Eventually. In support of this instance's retracement, I described a bullish scenario that suggested the news wasn't necessarily bad news for Trump. In fact, rallying relentlessly through the balance of the session retraced the plunge to 35 points into the afternoon's bias environment. That was narrowed to 5 points ahead of the close, which essentially ended the day essentially unchanged at 2642.00, but still 7-8 points under the plunge's origin. Firming into the futures close nearly touched 2545.00. Overnight action's new info... A relevant point to Friday morning's news story was retracted after Friday's close. Sunday night's Globex open was the first opportunity for a price reaction, and to tax reform advancing having cleared another hurdle over the weekend. Gapping up 10-12 points to 2654.50 was under Wednesday's 2658.50 high. Spiking up to 2663.25 reacted down to this morning's 2656.50 bias-up target as support. This defines a sideways range which has persisted through Europe's opens. If, then... Saturday Review described the likelihood for extending through Friday morning's high. Retracing the knee-jerk reaction's origin doesn't actually reward sponsorship that absorbed it. Probing new highs is a start, and need not last very long. Meanwhile, tax reform advancing was already largely discounted by Tuesday and Wednesday's rally. Now there is no complexity overnight high that would qualify as a "new Globex trend extreme," so there is no requirement to retest any of it intraday. And opening under its early low would suggest that momentum is reversing down for the morning. The early low is also this morning's bias-up target, so not renewing the bias-up signal could put the morning on defense. The bias-up signal is the plunge's origin, and not even triggering it could be outright bearish. First Trade... [Click here to view the Bias parameters] Exiting the open at 9:45 above 2658.25 would be likely also to exceed the 2656.50 bias-up target through 10:15 to renew the bias-up signal. Exiting the open above 2651.00 would be likely at least to trigger the 2649.00 bias-up signal at 10:15. Phonetic dictation... okay good morning and welcome it is Monday it's time for Monday's Morning Market to her real short and sweet because pretty much just went over this Saturday review but essentially Friday stunning move or moves the knee-jerk reaction to the news story that as analysis started noticing noticing I guess somewhere near the low which satisfied a lot of selling pressure that the report was maybe a little flawed and not in some minor ways to the session retraced to end the day basically unchanged actually 2642 is the cash Station close Friday 2641 basically was the Futures close on Thursday then it gets flipped 2646 or 45 actually was being attacked at Friday's close 2647 was being attacked at Thursday's cash session close so basically unchanged on the day but not yet Rich racing the origin of the plunge the knee-jerk reaction to the news which is what usually is retraced and more so buyers that absorb the reaction the knee-jerk reaction are typically rewarded with some higher high that didn't necessarily mean new Highs but the measurements came out to higher highs new highs and there's the prior hide Wednesdays I being tested at last night's open which by the way printed under did not print AB of Wednesday's high before probing it probing it in a single Spike up and spending the entire day of the night so far at least overlapping it now the cash session met yet we'll talk about it at the time for the time being unfinished business thanks to the overnight that would require this area to be retested in what way would be having which is essentially or even though which by the way this is all consolidating with support being the bias of Target so what would constitute a reversal would be this setup having probe the prior day's High overnight exiting the open under the early load early Globex low would reverse momentum down don't need to get any trending overnight to reverse just those two simple data points which by the way that would probably avoid signal 15 which means the signal wouldn't be renewedthat would likely lead to backing and filling backing and filling through the morning the bias up signal is 2649 if that doesn't trigger that by the way represents a complete replacement of the knee-jerk reaction to the news if 2649 is not recovered through 10:15 to trigger by step that would not just back and fill that would probably be pretty bearish for the morning not necessarily testing Friday's low but racing meaningful portion of it otherwise there isn't anything to prevent trending up nothing prevents is pattern from trending up but keep in mind this isn't just a reaction to the knee-jerk reaction or recovery of the new jerk reaction to the news this is also a reaction to the tax reform package that over the weekend which is interesting of course because this on Wednesday and Thursday this rally a lot of headlines detailing or describing or other advances other likelihoods for the event for the tax advance so that's pretty much built in its already discounted cannons to extend this morning it's going to be vulnerable to reversing down intraday again silver Friday of Thursday brakes Thursday to avoid testing support filling attraction Thursday even though I still did not maintain gapping down back into the range bouncing back up to 150 for resistancewe need to get out ofcrude oil tried extending stopped a little pessimistically short of actually filling the Gap back to its prior High clothes although that range was requested a little bit weaker here overnight but giving that every benefit of the doubt that a recovery is underway natural gas firmer here training back up to 3310 North at 310 312 which must hold as resistance to maintain the 287 Target the yen is not maintaining Fridays recovery from under the 89 8920 support level that had got one reaction on Thursday before being tested program or considerably on Friday and then reacting up overnight it's back that I actually got back down to Friday's Lowe's but you're being tested there's no bicycle here without closing which is pretty much positive territory the difference between positive or negative territory that's the weather today or tomorrow but tomorrow is going to be too late if at least 89 doesn't hold his support today breaking under 11860 on Friday before bouncing back to resistance giving it another shot today Looney extending Friday's rally which Fridays rally just was perfect storm here the break out and it's confirmation a required and eventual third lower close it was a fulfilled immediately no further downside requirement that's what that's what greeted Canada's economic news that triggered the Surge and that has just followed through pretty well back to 79 so we're back up to the size of this range that had multiple opportunities multiple tests for turns to what had been a bicycle at 78 7805 so presumably sellers a little bit more selling a false start fall start scratch the rubberband credible as any other bicycle it was triggered in this area today would confirm extended through the 13450 Target by holding a very shallow before bouncing 475 really have to give good luck today .

Overnight range fails early attempt to extend gap up. Gapping up sharply last night only ranged sideways into today's open. Essentially defined by 2656.00-2662.00, the 2660.00 open soon pierced a fresh high above 2665.00. The fresh high was largely maintained through the opening 15 minutes of volatility to form an anchor. If not extending higher, a pullback would be likely to recover. That's being put to the test now. Reacting down fell more than 4 points in only several minutes, reflecting impatient sellers. Only 38.2{faed0d6dca04cec8b6b7985efddb9b0651107a3aebb05f69f0166038b8c951f6} of the first reaction down was retraced before probing lower, also reflecting impatient sellers that prevented retracing a more constructive 61.8{faed0d6dca04cec8b6b7985efddb9b0651107a3aebb05f69f0166038b8c951f6} first.

Extending down to test 2658.00 is now reacting up. A buy signal at 2661.25 is being tested. Gaining traction would target 2667.25. Otherwise, back under 2658.00 would start to signal a deeper decline underway.

Meanwhile, there's no "unfinished business above." This morning's renewed bias-up environment has met its next targets. The opening print was above all prior highs, but it has now been tested from below -- the dip to 2658.00 touched Wednesday's prior high as support before bouncing back to the open -- which neutralizes its attraction above. Also meanwhile, NDX is plunging into negative territory, continuing the underperformance we discussed during this weekend's Saturday Review. More so, the Dow continues outperforming by extending to fresh highs while the SPX control group remains range bound. Speculative fervor is cooling. Leaving only the open's anchor, which doesn't necessarily have an immediate effect, to recover a drop if the anchor hasn't been retested already.

MON afternoon signal (triggered at 1:20 ET) SPX ES Bias-up: above  2661.00  2660.75 ...would target  2667.75  2667.50 Bias-down: under  2652.50 2652.25 ...would target 2647.25  2647.00 Signal status: NO-BIAS, TESTED BIAS-DOWN SIGNAL FAQ NEW! Flowcharts: Bias-UP // Bias-DN 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.

Consolidating the post-open slide. Gapping up to 2660.25 extended 5 points to probe the overnight range up to 2665.25. And then it reacted down. First to test 2658.00, and then to test 2651.00. 2651.00 had potential to hold the decline. And it has held. But while the decline hasn't extended, price action has only ranged back up to attack 2658.00. The decline had potential to 2649.00, which can't be dismissed until the consolidation breaks higher. A fresh session low down to 2649.00 or lower today could still recover to retest today's highs. But today's highs don't require a retest. And waiting too long to probe fresh session lows would risk inhibiting counter-trend sponsorship from absorbing it, clearing the way for a deeper decline.

Sunday night was greeted by a relief rally on tax reform advancing over the weekend. Monday's open offered the intraday crowd an opportunity to express a similar sentiment. But Wednesday and Thursday's rally last week already had anticipated the news, so rallying Monday morning was likely to reverse down. Which it did. We patiently awaited a break either way of the overnight sideways range. The first spot to fade it followed the first detached tick from testing 2663.75 by 6 ticks. Its reversal down touched last Wednesday's high to become relevant, so that its bounce could neutralize the 2660.25 open. Suddenly, there was no "unfinished business above." The morning's 2651.00 low launched another sideways range attacking 2658.00 through the afternoon bias environment. Multiple opportunities to rally were ignored, and it wasn't long before learning why -- the bias environment exit resumed the decline. Another collapse slid to test 2639.00, where the balance of the session hovered until a last-minute blip to 2638.00.

Monday is the second session to have tested the rally's 2657.25 objective. And both of its tests have closed back under 2651.00. This suggests distribution. Meanwhile, continued underperformance by NDX and outperformance by the Dow suggests big money rotating out of speculative and into safety.

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  2643.25 2643.00 ...would target  2648.50  2648.25 Bias-down: under  2636.75  2636.50 ...would target  2630.75  2630.50 Signal status: NO-BIAS, TESTED BIAS-UP SIGNAL FAQ NEW! Flowcharts: Bias-UP // Bias-DN 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.