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 gapped up to the rally's next higher objective at 2656.00, and soon began a dip that attacked Thursday's 2645.50 high. The bias timing window touched 2647.00 and resumed rallying through the noon hour to 2677.25. The afternoon bias environment's dip to 2662.00 was retraced to 2670.50 through the cash session close, and to 2672.50 through the futures close, and then to 2677.75. The bullish WedEX was a wash by the cash session close, and marginally successful by the futures close. Overnight action's new info... The market was under pressure from Sunday night's open, which gapped down to 2669.00-2673.50, and continued falling through Monday morning to test 2656.00 -- what was Friday's opening print, and what had been the rally's next higher objective and . Bouncing to 2666.00 through last night's open was reversed down to 2649.50, which is now being retested after an interim bounce to 2658.00. If, then... (notes to accompany the Tour recording) Closing above 2656.00 Friday put into play the rally's next higher objective at 2701.00. Closing firmly above its room for noise at 2668.50 would have helped to confirm the new target, if not also resume the rally aggressively and without delay. However, still overlapping 2668.50 at Friday's close left the door a little wider open to rejecting the new target, by both opening and closing back under 2656.00. That's currently indicated, but with plenty of time to recover pre-open if the market intends. Meanwhile, irrelevant to the open gapping down, the WedEX's influence may insert an aggressively bullish post-open detour through this morning's bias environment. A session-long decline setup could form by gapping down under its 2662.00 afternoon low after having trended up into Friday's close, but it's not very reliable when developed over a weekend, let alone over a three-day weekend. And having trended down relentlessly since the last close, all while being contained within Friday's range, it may be difficult for overnight sponsorship to find opening reinforcements that will take price lower. First Trade... [Click here to view the Bias parameters] Exiting the open at 9:45 under 2656.00 would be likely also to exceed the 2657.50 bias-down target at 10:15 to renew the bias-down signal. Exiting the open under 2663.50 would be likely at least to trigger the 2666.00 bias-down signal at 10:15.

Fresh lows are the beginning, or the end. Wide, choppy ranging since before midnight had been contained largely within 2649.00-2656.00. The opening 15 minutes of volatility chopped around just below toward the overnight range's upper-end. But the opening 15 minutes did not trend, so no downside momentum was indicated. Breaking lower to 2641.25 held a test and retest of the 61.8{faed0d6dca04cec8b6b7985efddb9b0651107a3aebb05f69f0166038b8c951f6} retracement of the gap between Thursday's cash session close and Friday's opening print. This is the last line of defense I had noted during this morning's Market Tour. It's also the only price action to have developed under Friday's range -- all of the selling since then is otherwise an Inside Day. Reacting up just tested 2650.00, and could extend up to 2652.50-2654.50, while still being only temporary. Recovering back above 2656.00-2657.50 during the bias environment could end the pullback and keep 2710.00 in-play. Otherwise, back under 2645.00 (being tested now) could resume the decline. And closing under 2656.00, after having opened under it, would invalidate 2710.00 and probably also end the bear market rally.

TUE afternoon signal (triggered at 1:20 ET) SPX ES Bias-up: above 2648.75 2649.00 ...would target 2655.75 2656.00 Bias-down: under 2638.25 2638.50 ...would target 2629.00 2629.25 Signal status: BIAS-DOWN, BIAS-DOWN TARGET EXCEEDED . BIAS VIDEOS... INTRO // EXAMPLE 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.

Has the drop gotten ahead of itself? Even the first break from this morning's opening 15 minutes of volatility was still within Friday's range. But its 2647.00 lower-end soon broke, and has extended down. This afternoon's bias environment is being greeted at 2623.25. That's a test of "lower prior highs" at 2625.00 from last Wednesday and Thursday. Having expended so much energy to test a relevant level, holding its test through a relevant level can define a near-term low. Already, a bounce is testing 2632.50. The bias-down environment could also test its 2638.50 bias-down signal without yet suggesting a bigger recovery underway. Oversold RSIs at the low will require an eventual retest. Probing only slightly lower fresh lows would be tolerated by any pattern trying to form a durable low. There's otherwise risk that the low's retest will facilitate a new downleg next targeting 2605.00.

Tuesday's 2654.00 opening print gapped down 17 points from Friday's close. The opening 15 minutes of volatility ranged flat-to-lower. Only then did sellers finally do what they'd only threatened since Sunday night's open -- actually touching Friday's 2649.00 low. The relentless overnight slide didn't find reinforcements immediately, but they arrived before a bounce could develop, which sufficed. Meanwhile, opening back under 2656.00 allowed a close under 2656.00 to reject Friday's close above 2656.00, and the rally's next higher objective. This doesn't itself reverse the trend down, so much as it opens the door to a reversal signal. Which is formed by Tuesday's sudden, steep and substantial reversal from the prior session's fresh recovery high. It's not the intraday reversal we've been anticipating, but it qualifies. The reversal still needs to be confirmed by a second consecutive lower close on Wednesday. That could be helped by extending to the next lower target at 2605.00 which was left outstanding by Tuesday's 2616.50 low. But that's still 25 points short of a lower low to signal a new downtrend underway. Bouncing first on Wednesday could test 2656.00-2666.00 before suggesting that Tuesday's drop was only a detour. 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 2638.25 2638.50 ...would target 2646.50 2646.75 Bias-down: under 2625.00 2625.25 ...would target 2617.75 2618.00 Signal status: BIAS-UP, BIAS-UP TARGET EXCEEDED . BIAS VIDEOS... INTRO // EXAMPLE 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.