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... (summary of last Market Wrap) Thursday night's narrow ranging above all prior highs was just complex enough for its 3188.25 high to form a "new Globex trend extreme" that requires eventual intraday retest. It was almost retested Friday morning despite two pre-open collapses to 3166.00 and 3163.00. But the latter dip's recovery stopped just short at 3187.00. Which also collapsed, more gradually but still sharply, to test 3160.00. Bouncing through the noon hour attacked 3176.00, the afternoon's high. Ranging there sideways through the close ended slightly ahead of Thursday's close, but under Thursday's highs. Overnight action's new info... (nearby chart is last intraday session and Globex) Gapping up 4 points at 3179.50 Sunday night consolidated between 3177.00 and the 3180.00 bias-up signal. Breaking higher extended to 3185.00 by midnight, and then up to the 3187.00 bias-up target soon after Europe's opens. Now piercing the 3188.25 "new Globex trend extreme" by 1 tick -- but only overnight. If, then... (notes to accompany the Tour recording) The "new Globex trend extreme" must be touched intraday to neutralize its required retest. Being so near it, this near to the open I'll be reluctant to sell anything but a reversal setup any earlier. Although gapping up above all prior intraday highs would require being retested eventually from below, the door would be open to an interim detour back down. And having trended up relentlessly overnight, not extending higher through the open would suggest a detour back down is being taken as no reinforcements are being attracted. Friday's Isolation setup can be invalidated confirmed only by closing negative, which remains possible regardless of rallying this morning, so the burden of proof remains on buyers. Meanwhile, trending up through the open would suggest the rally's momentum remains intact, and could serve by proxy for Friday not qualifying as a new trend high close, suggesting the relentless overnight trending is attracting intraday reinforcements, all resuming the rally to 3203.00-3206.00. First Trade... (preliminary indications for the Bias parameters) Exiting the open at 9:45 above 3184.25 would be likely to trigger the 3180.00 bias-up signal at 10:15. Exiting the open under 3177.00 would be unlikely to trigger bias-up.

And still probing higher. Already corrected in the First Trade blog post, and during the pre-open chaRTroom guidance: Closing negative under 3173.00-3175.00 would confirm Friday's Isolation setup remains intact (if not also reinforce it), while closing above Thursday's 3180.25 high would invalidate it. Closing in between them would not be decisive either way.

Although... After now testing 3201.00, closing back under Thursday's 3180.25 high wouldn't be bullish.

So, intraday sellers may be marginalized this morning for not rejecting the relentless overnight rally. But now attacking the 3203.00-3206.00 target area, more narrowly defined as 3204.00-3204.75, which would neutralize a lot of buying pressure. And even prematurely, a lot of selling pressure can be expended without it reversing the trend down. Just retracing the open's range could hold a test of 3195.50. A gap2gap retracement could test 3182.00 and still be likelier to bounce.

MON afternoon signal (triggered at 1:20 ET) SPX ES Bias-up: above 3200.00 3204.00 ...would target 3207.75 3211.75 Bias-down: under 3191.50 3195.50 ...would target 3186.25 3190.25 Signal status: NO-BIAS . 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.

Gap-and-go?. This morning rally got to 3201.00, and then retested it while both 1-minute and 3-minute RSIs diverged negatively. That formed a Double Top, which is always likely to recover its reaction and resume the trend. This reaction touched 3197.75 before recovering to fresh highs, attacking the 3203.00-3206.00 objective to within 3 ticks. [CLICK HERE for a brief video I just recorded discussing a Risk:Reward consideration for that Double Top recovery's setup. I explain why its unfavorable 2:1 Risk:Reward ratio was attractive anyway.] Meanwhile this morning formed a Gap-and-Go setup, gapping and extending trough the bias environment. This setup is likely to range sideways through the close. Attempting to extend or to reverse the trend is likelier to reverse back this morning's highs. Afternoon upside to 3204.00-3204.75 would still be entirely credible for maintaining the Gap-and-Go setup. Afternoon weakness could test 3195.50 and still be more vulnerable to bouncing back to this morning's highs, as the setup would suggest. Otherwise, back under 3195.50 could ignore the Gap-and-Go and close negative.

Friday's Isolation setup was invalidated by closing above Thursday's 3180.25 high on Monday. Monday's 3192.00 opening print improved to within 3 ticks of touching the rally's 3203.00-3206.00 objective. Testing a target is vulnerable to reversing back down, but not after maintaining the morning's Gap-and-Go setup through the bias environment. Trending attempts for the balance of the session would likely react back toward earlier highs. In fact, the afternoon's sell signal reached its 3195.50 at the final minute, and bounced back up to 3200.00 through the close. The day following a Gap-and-Go tends to extend the counter-trend, making a deeper pullback likely. Gapping up would be credible for extending the rally without delay. Some near-term fresh high is likely this week as the Gap-and-Go's reward, so long as a pullback doesn't get carried away. [CLICK HERE for a brief video from Monday morning which describes why a setup's otherwise unfavorable 2:1 Risk:Reward ratio was attractive anyway in this instance.] 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 3197.00 3201.00 ...would target 3203.75 3207.75 Bias-down: under 3189.50 3193.75 ...would target 3183.75 3188.00 Signal status: noN-BIAS, STILL TESTING 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.