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 rally rewarded Thursday's buyers for having gained traction. Gapping up to 2730.00 extended higher through the bias environment to 2745.50. Thursday's close back under 2718.00 created a position of weakness for launching Friday morning's rally. So the rest of Friday gradually retraced the post-open gains. And then quickly retraced much of the pre-open gains down to 2720.75. Collapsing under the opening gap signaled its rejection. Ending back under Thursday's highs increased the vulnerability to gapping down Monday. Overnight action's new info... Sunday night's open blipped-up to 2725.25 then spiked down to 2712.50. The spike down was triggered by news of a not-new story (WTO exit), and recovered to test this morning's 2727.25 bias-up signal. But it was straight down from there -- relentlessly, more than aggressively -- to greet Europe's opens at 2702.00, soon extending to 2698.50. Price action since then has consolidated back up to 2710.00. If, then... There's nothing bullish about probing under 2704.00 again, as did three of last week's sessions. Support there has been thoroughly chipped away, including 10 points lower where Thursday morning found its low. Post-open action may not dip back down to 2704.00 or it may isolate its test to the open. Not already recovering 10 points higher through the open would remain vulnerable to another downleg. First Trade... [Click here to view the Bias parameters] Exiting the open at 9:45 under 2709.75 would be unlikely to recover the 2711.00 bias-down target at 10:15, renewing the bias-down signal. Exiting the open under 2715.00 would be likely at least to trigger the 2718.00 bias-down signal.

Open's attack on overnight low reacts up. The 2698.50 overnight low's reaction up to 2710.00 held. Retracing only 38.2{faed0d6dca04cec8b6b7985efddb9b0651107a3aebb05f69f0166038b8c951f6} of the overnight drop from 2728.00 reflected excessive pessimism. This made extending down more difficult than from a 61.8{faed0d6dca04cec8b6b7985efddb9b0651107a3aebb05f69f0166038b8c951f6} correction. But it could be done. It wasn't. 2700.50 was quickly touched and recovered by increasingly wider swings, eventually touching 2716.00. Which is within 2-3 ticks of the overnight drop's 61.8{faed0d6dca04cec8b6b7985efddb9b0651107a3aebb05f69f0166038b8c951f6} correction. Levels not recovered include:

2711.00 ...The bias-down target maintained its break to renew the bias-down signal, next targeting 2704.00. Which was already touched, so retesting it during the bias environment would likely break lower, too. 2704.00 ...Holding as resistance through the opening 15 minutes of volatility at 9:45 creates a position of weakness. It can't prevent trying to bounce, but should doom to failure any bounce attempt.

Speaking of which, about that bounce to 2716.00. It's struggling now, but extending would target 2723.50. Its origin would still be from a position of weakness, dooming it to failure, likely to reverse down or not even recover above 2716.00. Back under 2710.50 would signal the bounce already failing, targeting 2704.00 and potentially a more substantial break below.

MON afternoon signal (triggered at 1:20 ET) SPX ES Bias-up: above 2715.00 2716.50 ...would target 2722.00 2723.50 Bias-down: under 2702.25 2704.00 ...would target 2694.25 2696.00 Signal status: LATE NO-BIAS, TESTED BIAS-DOWN SIGNAL FAQ 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.

Post-open rally retraces the opening lows, almost. The open's test of 2704.00 wasn't recovered through 9:45, creating a position of weakness. So, despite rallying to attack 2719.00, sliding into and out of the noon hour has returned to 2704.00. But only to 2704.00. 2704.00 is this afternoon's bias-down signal, and it didn't trigger. Not even after invoking the grace period. And now its reaction has bounced to 2711.00, with room up to the afternoon's 2716.50 bias-up signal. Back under 2707.50 would signal the decline is resuming, although 2704.00 should hold its test until the window comes within view of lapsing. Then 2696.00 and 2692.00 would be in-play.

Holidays impact liquidity, which impacts volatility, because lower volume inhibits participation, and that's just among the participants that bother showing up, while so many other participants are on holiday, which is impacting liquidity. You've heard of the Circle of Life? That's the circle of death. Or, it can be. If Monday afternoon's 24-point rally is any indication, then trending attempts remain possible. Trending within the range, more so than trending beyond it. Like Monday's recovery from its overnight probe of 22 points under Friday afternoon's 2720.50 low. That was back TO the range's lower-end, but not THROUGH it -- before reversing 24 points back INTO it up to 2728.50. And the afternoon rally came from a position of weakness at 2704.00, already retracing the morning's rally, and now likely to retrace Monday afternoon's rally. Likely to retrace it Tuesday so long as the open isn't extending Monday afternoon's rally, and preferably already trending down. Extending any higher Tuesday morning wouldn't be any likelier to retrace last week's highs. Actually, Tuesday morning's likely pattern only ranges sideways, still being vulnerable to trending into the 1:15 PM ET early close. [Programming Note: Tuesday's Market Wrap will be held early.] 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 2729.00 2730.50 ...would target 2734.00 2735.50 Bias-down: under 2719.25 2721.00 ...would target 2711.25 2713.00 Signal status: BIAS-UP, BIAS-UP TARGET MET FAQ 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.