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

Through the prior close... (summary of last Market Wrap) Friday's expiration session developed exclusively within Thursday's range. An overnight probe of new highs up to 3388.50 had been retraced to open almost unchanged at 3378.00. The morning ranged between 3370.00-3381.00, which the afternoon probed down to 3365.25. It might have extended lower but for a favorable headline (proposed tax break for buying stocks). The balance of the session rallied up to 3382.00, a new high close but still under Thursday's prior intraday highs. Both the morning and afternoon bias objectives were met, and neither the overnight high nor Friday high close qualified to require a retest. Overnight action's new info... (nearby chart is last intraday session and Globex) Sunday night's Globex open spiked up to Thursday night's 3388.50 high, and essentially settled there in Monday's holiday-shortened trading. Its sideways range had touched 3392.50 overnight, fulfilling the rally's 3391.00 objective. AAPL warned of a miss due to coronavirus before Monday night's Globex open, triggering its gap down to 3378.00. Extending lower retraced the origin of Friday's late surge from 3372.00. The decline extended, and Europe's opens bounced from 3363.00 back up to 3372.00. The decline extended again to attack 3361.00 for another bounce, which has also largely failed. If, then... (notes to accompany the Tour recording) Meeting the 3391.00 target during holiday trading is less credible for fulfilling it. The "new Globex trend extreme" that its test formed is similarly less credible for requiring an intraday retest. Monday's headline reaction is an artificial trigger, and its collapse will likely recover if the open holds its test of Friday's lows -- or of any prior lows that the open tests. Reversing into a rally might not encounter resistance until 3369.50, but its recovery would target Friday's close 10-12 points higher. Gapping down under Friday afternoon's 3365.00 low could form a "session long decline." Regardless, failing to hold any prior low's test would likely extend to 3346.00, or 3339.00-3341.00, if not also to 3333.00. First Trade... (preliminary indications for the Bias parameters) Exiting the open at 9:45 under 3367.75 would be likely to trigger the 3370.00 bias-down signal at 10:15. Exiting the open above 3373.00 would be unlikely to trigger bias-down.

Might be only a brief detour on the way back up. The 3361.25 overnight low was just the second of 3-4 tests of this morning's 3364.00 bias-down target as support. Its interim reactions held tests of the 3370.00 bias-down signal as resistance. Until the open. The 3368.50 open soon surged to attack 3374.00. And reactions down repeatedly recovered to touch 3374.00. Which was also an inflection point, and any higher would have triggered a buy signal. Consolidating at or under 3374.00 for so long had created so much congestion that a breakout in either direction would be suspicious. But more so to the downside, since the Opening Thrust had recovered from testing 2 of Friday's 3 late lows, suggesting that sellers were weak-handed. But buyers didn't exploit the failed Opening Thrust after the first 15 minutes of volatility. And despite recovering the 3370.00 bias-down signal through 10:15 to trigger no-bias, 3370.00 was broken through 10:30. So, no-bias is invalidated. This morning's bias parameters are not predictive. Now a post-open collapse to 3362.50 has reacted up 7 points to attack the 3370.00 bias-down signal as resistance. Again. Resistance is pushing back to test 3365.00, and any lower could resume the collapse to 3346.00 and lower.

TUE afternoon signal (triggered at 1:20 ET) SPX ES Bias-up: above 3364.00 3363.50 ...would target 3371.00 3370.50 Bias-down: under 3354.50 3354.25 ...would target 3347.00 3346.75 Signal status: BIAS-UP . 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.

Just a detour? An interim support at 3355.25 was labeled in the chaRTroom and proved influential. Double Bottoming there while RSIs diverged positively launched a bounce up to 3368.25. That triggered the 3363.50 bias-up signal, putting into play its 3370.50 bias-up target. That doesn't ensure the drop is done, that it won't resume and extend down to 3346.00 and lower. In fact, the noon hour was entered under Thursday's 3359.50 lows, so the noon hour bounce still underway didn't originate from a position of strength. Extending higher through 3375.00 would target filling the gap back up to Friday's 3380.00-3381.00 close. Perhaps even to retest Sunday night's highs. Otherwise, the 3370.50 bias-up target can be left outstanding as "unfinished business" if the bias environment exit wants to resume the decline.

Gapping down sharply Tuesday from the 3392.50 holiday highs tested much of Friday's 3368.00 late lows. But the Opening Thrust setup wasn't bearish, and the bias-down signal held to trigger no-bias. Reacting up to 3374.50 was rejected in time to invalidate no-bias. That was exploited by breaking lower through the morning to test Thursday's 3359.25 lows down to 3355.25. The afternoon retraced the open's 3374.50, remaining within the previous leg's range. Neither buyers nor sellers gained traction for their efforts, and the 3370.00 close was overlapping its 3368.50 opening print. Bouncing back to the open's 3374.50 high may have been limited to being only noise because it originated from a position of weakness -- entering the noon hour under Thursday's prior lows. The low's retest isn't required, but there is no bullish reason for its retest. Retesting Tuesday's low intraday would likely break lower, next targeting 3346.00 and 3339.00-3341.00 or lower. Since no traction was gained either way Tuesday, trending Wednesday morning should begin by gapping open. Gapping up would encounter challenging resistance at the gap back up to Friday's 3379.00-3380.00 close, but its reward could test the weekend's 3392.50 high. Alternatively, gapping down under Tuesday afternoon's 3362.50 low would likely extend lower, although it not as a session-long decline setup. 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.

WED morning signal (triggered at 10:15 ET) SPX ES Bias-up: above 3374.50 3374.00 ...would target 3380.75 3380.25 Bias-down: under 3366.50 3366.00 ...would target 3361.00 3360.75 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.