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

DAILY SCHEDULE Watch the pre-open Tour recording* HERE <<== *Manually open Adobe Connect (install on Windows or Mac), then paste the recording's link there. chaRTroom** is now open... Pre-open update is at 9:15 ET **This is NOT the direct chaRTroom link

Through the prior close... (summary of last Market Wrap) A bigger reward for having absorbed Thursday's collapse to 3105.00 was not part of the overnight agenda, which retraced the collapse down to 3111.50 instead of improving the recovery above 3155.00. But Friday's opening thrust held the 3135.00 bias-down signal and a brief dip to 3126.50 was quickly rejected as sellers were all but marginalized for the day. Unfinished business at 3177.00 was ultimately probed by 3 ticks, on the way to fresh highs for the week by a 5-point margin up to 3179.50. Overnight action's new info... (nearby chart is last intraday session and Globex) Sunday night's open gapped up to 3183.50 and almost immediately extended up to 3199.00. Its reaction down only tested 3182.00, piercing last Monday night's 3184.00 Globex high but not even touching Friday's post-close higher highs -- not even threatening Friday's 3175.00 cash session close. The balance of the night has essentially ranged sideways. A brief surge attacking 3203.00 was reversed back down to the range's lower-end through Europe's opens. But the gap up remains intact, and the range's highs were just pierced above 3204.00. If, then... (notes to accompany the Tour recording) Greeting the week above last week's range isn't surprising, as potential remains alive for fresh recovery highs. Last Monday's gap up neutralized longstanding unfinished business back up to the 5-week old Island. And then the multi-session trending evolved into flat-to-lower ranging. Until Friday's rally (which actually began at Thursday morning's low) back up to and through Monday's high. It was unlikely that the interim pullback recovered entirely just to hold its retest. As the interim buyers are rewarded, it is also not surprising for momentum to begin struggling, e.g. gapping up into a sideways range. But that starting-and-stopping behavior should be only intermittent as the recovery works its way through the  5-week old Island -- overly-optimistic behavior will be more suggestive of the rally nearing its end. Probing this morning above the Island's highs would still be vulnerable to another corrective dip back into the Island this afternoon. First Trade... (9:45 preliminary indications for the 10:15 Bias parameters)

Exiting the open above 3188.00 would be likely at least to trigger the 3181.00 bias-up signal. Exiting the open above 3201.50 would be likely also to exceed the 3197.50 bias-up target to renew the bias-up signal.

Post-open dip holds limit. Trending up this morning was likely since Friday afternoon's traction had not been invalidated Sunday night. An opening dip was likely because Sunday night's opening surge had quickly developed into sideways ranging. The opening dip's pullback area was widely defined as 3190.75-3195.00. Its upper-end was pierced and then its lower-end was touched to within 1 tick. Bias-up renewed by entering the bias environment above its 3197.50 bias-up target. The next half hour rallied up to the 3211.00 renewed bias-up target. The morning is still too early for entrenched trending to be reversed. A pullback to 3203.00-3205.00 has resolved up to fresh highs testing 3219.00. The one potentially bearish pattern we discussed this weekend can now trigger by trending down this afternoon. Otherwise, the bigger picture's complex Ascending Triangle is now targeting fresh recovery highs.

MON afternoon signal (triggered at 1:20 ET) SPX ES Bias-up: above 3232.00 3221.50 ...would target 3242.50 3233.00 Bias-down: under 3217.50 3208.00 ...would target 3207.00 3197.50 Signal status: noN-BIAS, STILL TESTING 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.

May be forming a Gap-an-go. This morning's pullbacks and consolidations all failed as the renewed bias-up timing window considered those efforts to be weak-handed. Ultimately, the post-open dip's test of the 3191.00-3195.00 pullback limit was reversed until the bias window began lapsing at 11:30 at 3222.50. Ranging sideways since then dipped to 3213.50 and then probed a fresh high above 3226.00. Its reaction quickly dipped back into the interim range, back under the morning's high. This may be forming a Gap-and-go setup. Its basis is the open's gap, and then extending it through the bias environment or into the noon hour. It triggers by only hovering through the close around the morning's high.

Retracing the brief probe testing 3226.00 back into the range keeps alive the Gap-and-go formation. A dip has room down to 3209.00 or 3203.00. A pullback through tomorrow would be likely, and then fresh highs within the next two days.

Trending down back under the 3200.50 opening print would start to suggest a bearish pattern is already developing, and it could extend to the downside very quickly. Otherwise, any shallower pullback today remains likely to resolve up soon.

Gapping up Monday to 3200.50 and trending up through the morning's renewed bias-up attacked the 5-week old Island's high to within 1 point at 3222.50. The afternoon's noN-bias window produced a new recovery high at 3226.25 -- which immediately began sliding back down to the 3191.00 opening lows. A brief bounce reversed back down into last week's range at 3140.50. Is this the one bearish pattern we discussed at this weekend's Saturday Review? Its simple conditions were met by reversing a morning rally into an afternoon decline. These are the suspicions, none of which would be relevant if Tuesday confirms Monday's reversal:

Simultaneously overbought 1-min and 3-min RSIs left outstanding at the afternoon high is unfinished business that requires an eventual retest. The bigger complex Ascending Triangle has rewarded its buyers only to the shallowest degree. They're still rewarded, but they might come back for more if sellers hesitate or allow too big of a bounce for too long. Underpformance by NDX compared to SPX & INDU was too brief to qualify as rotation. Monday afternoon's substantial slide doesn't represent the sentiment of even one half of one day. And its reversal only retraces a portion of the prior day's range -- no prior low. The sudden repricing may have priced out reinforcements if not immediately attracted overnight and at Tuesday's open. A bullish Gap-and-go setup almost formed but for the afternoon paradigm shift. Tuesday would have been likely to pullback before recovering to fresh highs, so we'll monitor for that possibility.

None of which is mutually exclusive. The bigger bearish pattern(s) may be forming, while also still being able to bounce somewhat into Wednesday's WedEX look. See details and other markets coverage in the post-market Wrap recording* here. *Manually open Adobe Connect (install on Windows or Mac), then paste the recording's link there. Monitor overnight Globex trading in the chaRTroom here [NOT the direct link].

TUE morning signal (triggered at 10:15 ET) SPX ES Bias-up: above 3170.75 3160.25 ...would target 3186.50 3177.00 Bias-down: under 3145.50 3136.00 ...would target 3131.00 3121.50 Signal status: BIAS-DOWN, BIAS-DOWN TARGET MET . 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.