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... Monday's rally to test prior highs up to 2869.00 -- didn't extend Tuesday beyond Monday's 2873.50 intraday high. The morning's bias signal triggered a reaction down to 2862.25 that met and held its pullback objective, qualifying as backing-and-filling. The balance of the session rallied back up to 2873.50. A very last-minute reaction collapsed back under 2869.00 to 2867.00 through the futures close. The upper-end of the distributive range held, and pushed back twice, but never reversed the trend back down. Overnight action's new info... Tuesday's last-minute collapse had triggered a sell signal targeting 2866.00, which was met at the Globex open. Sideways ranging held its retest, perhaps thanks to China trade headlines that triggered a couple of surges up to 2882.25. The two surges formed complexity that creates a "new Globex trend extreme" requiring intraday retest, often the same day. A shallow consolidation back to 2878.00 recovered through Europe's opens up to 2884.00, but only briefly as 2880.00 is being tested as support. If, then... (notes to accompany the Tour recording) Fresh highs were possible regardless of their resolution, even if only temporary to stretch the rubber band so it can snap back down aggressively. Whether to 2779.00 or up to 2885.50, there was no requirement to be met before reversing down, but the China trade headlines have injected an optimistic bias. Zerohedge is criticizing the mechanical reaction for ignoring the remaining disagreement on implementation and enforcement, which may be true. But if these levels don't reinstate the two-week old distributive pattern, then not reversing down would next target 2902.00. First Trade... [Click here to view the Bias parameters] Exiting the open at 9:45 above 2779.00 would be likely to at least trigger the 2875.50 bias-up signal at 10:15. Exiting the open above 2885.00 would be likely also to exceed the 2882.25 bias-up target at 10:15 to renew the bias-up signal.

Another post-open slide recovered. Yesterday's open was attacking the overnight highs and immediately began backing-and-filling. Its dip held support (a late-morning offsetting test of its bias-down signal) and recovered through the afternoon. Today's open was also attacking its overnight highs and also immediately began backing-and-filling. Its dip has already held support (the first half-hour's touch of the  2875.50 bias-up signal), and also already recovered to and through overnight highs.

The open had touched the rally's next higher objective at 2885.00, but 2779.00 had maintained its recovery through 9:45 to make the bias-up signal likely to be triggered a half-hour later. Triggering bias-up put into play its 2882.25 bias-up target, regardless of having been tested already post-open. Also likely was a retest of the 2886.25 overnight high's "new Globex trend extreme."

All of which is being probed up to 2889.00. Its too late to trigger the renewed bias-up signal targeting 2902.00. But exiting the bias environment above 2885.00 would likely target it, anyway. Not maintaining the probe above 2885.00 would not put into play 2902.00, and could start more backing-and-filling.

WED afternoon signal (triggered at 1:20 ET) SPX ES Bias-up: above 2884.75 2889.00 ...would target 2892.00 2896.25 Bias-down: under 2877.00 2881.00 ...would target 2870.00 2874.00 Signal status: NO-BIAS, TESTED BIAS-UP SIGNAL . 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.

Backing-and-filling, again. This morning's recovery was contained to its bias environment. The post-open backing-and-filling that held the 2875.50 bias-up signal as support to trigger bias-up. Its 2882.25 bias-up target was met, too late to renew the bias-up signal. But it was still a bias-up environment, likely also to visit the 2886.25 overnight high's "new Globex trend extreme."

Probing the overnight high by 3 points to 2889.25 also exited the bias environment above 2885.00. This did what renewing this morning's bias-up would have done, putting into play 2902.00. Which would be confirmed by closing above 2885.00.

Meanwhile, the rally has not extended. The afternoon triggered no-bias, and the market is backing-and-filling. Again. Being a no-bias environment, its 2881.00 bias-down signal should define the window's lower-end if tested. But its test is probing 5 points under it, "no-bias trending" that will require retracing 2881.00. Is 2902.00 entrenched, for having exited the bias environment above 2885.00? That's the assumption, until disproved -- by closing back under 2885.00. Meanwhile, RSIs have become simultaneously oversold on this pullback, and the nearest buy signal is back above 2883.00.

The rally's next higher objective at 2885.00 was already being tested by Tuesday night's China trade rally, and greeted Wednesday's open there. Immediately collapsing to test the morning's 2875.50 bias-down signal held, triggering a complete recovery to the 2886.25 overnight high's "new Globex trend extreme." Up to 2889.25, which defined the bias environment's high. Despite exiting the bias environment above 2885.00, 2889.25 was never exceeded to confirm upside momentum remained intact. The next higher objective at 2902.00 was never confirmed, either. And not for lack of proximity, as the noon hour ranged exclusively above 2885.00. The afternoon's no-bias trending under its 2881.00 bias-down signal was productive, dipping under its 2874.00 bias-down signal to 2869.00, the pullback potential I had described before the open. But not in time to invalidate a requirement to retrace the 2881.00 bias-down signal, which is now unfinished business.* As is the 2884.75 opening gap up, which has yet to be retested since dipping back into a prior session's range. (*Wednesday's late bounce extended through the close to within 3 ticks of 2881.00 which satisfies its required retracement.) Nothing requires extending up through or reacting down from testing the higher attractions. But there continues to be strong selling into rallies, so regardless of the near-term potential upside, a reversal down remains likely. Details and other markets coverage are discussed in the post-market Wrap recording here. Monitor overnight Globex trading in the chaRTroom here.

THU morning signal (triggered at 10:15 ET) SPX ES Bias-up: above 2878.00 2881.75 ...would target 2885.25 2889.00 Bias-down: under 2868.50 2872.50 ...would target 2862.75 2866.75 Signal status: LATE NO-BIAS, TESTED BIAS-UP SIGNAL . 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.