Proper context can start the day with a solid win and make all the difference. NEW! Market Tour transcript included at the end of this post...

NEW 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... Thursday's open isolated an overnight probe under Wednesday's range, quickly extending up to 2366.00. It quickly peaked and ranged sideways through the noon hour  The afternoon's bias environment was a 12-point plunge that probed under the overnight low down to 2351.00. Being sponsored by weak hands, it was retraced entirely through the close to its 2363.00. Oversold RSIs was left outstanding at the low, and the ongoing downtrend was maintained. But it was the first positive close. Overnight action's new info... The late recovery extended relentlessly back up to and through Thursday's high. Several hours of a narrow 6-tick range at Wednesday's 2370.00 high greeted Europe's opens which triggered a surge to 2373.00. A dip to 2370.00 was briefly retraced entirely. If, then... No traction was gained by yesterday afternoon's recovery, so gapping up is the only credible way to rally this morning. Gapping up would also help to break the attraction to retesting yesterday's low. Not just gapping up, but also maintaining the gap up through the open. Two big challenges to that. First, a lot of buying pressure is being expended already, by trending up relentlessly overnight, and by probing two session highs. Second, extreme optimism ahead of an event like this morning's payrolls can be bearish from a contrarian perspective. A knee-jerk reaction down can still recover enough in time for Friday Factors to trigger a short-squeeze into the weekend. Friday Factors can cut either way, so not maintaining a gap up can find today's focus suddenly shifting to retesting yesterday's low. First Trade... [Click here to view the Bias parameters] No preliminary indications are considered before an Employment Situation report. Phonetic dictation... [NEW! Unreviewed voice-to-text real-time dictation of the Market Tour recording. Again, not reviewed or edited in any way, which can be equally confusing and humorous.] Alright good morning and welcome it's time for Friday's Morning Market to her we've got the employment situation report schedule for pre open about an hour from now and we have an ongoing downtrend multi-session to clean off of last Wednesday's High series of lower lows and lower highs intraday relentlessly testing lower Pryor has from the prior week somewhat relentlessly finally breaking that Trend in one regard yesterday not the lower lows and lower house but actually closing positive every other session maybe not the second in the series that was flat this was the first positive close as opposed to negative closes all on the way and that indicated that at least sellers weren't making any substantial inroads despite probing lower it's still not reversing the trend an overnight that has already had an impact that positive close in the downtrend for the first time in 6 days has already had an impact on price by producing a rally first to 2370 testing Wednesdays resistance and then to 2373 briefly once we flee again so there's potential here to Gap up yesterday's buyers despite rallying into the clothes didn't gain traction for their efforts being and I'm going down to it would discuss this every day the Lord has the only way to to reverse that is first to retest the well or to Gabba so if the Gap up can be maintained we can start and get substantially well on the path to the tracing the past weeks to climb member it's Friday in there are Friday factors like that are driven by the impending everyone's minds or at least has other issues brought to the Forefront driving decisions that are as prevalent earlier in the week and they can result in the shorts can result in the office as well trying to Gap up isn't maintained testing prior has any prayer hi that's tested through the out during the open if it's not maintained through the open it's a good and we could be off to the races today was and there is that looks like Broadway what is over-extended I should say is the market as of the decline is if there's a negative need your creaction down that doesn't extend that reacts backup for covers just a blip down that greets the open in gap upload entirely capable of having corrected itself and being on the road to extending higher so what's up the pound still still waiting here right around 1 2170 back to 122 it was the target area of this break probing Lowe's not closing lower also not yet rejecting that that is a reasonable setup for a bottom so I've seen any behavior in the loony and we do kind of have a set of clothes from multi-session rain and then the euro I came of that parallel uptrending support spiked up on the ECB news yesterday only two once again go out ranging around the balance on that 105-85 putting on a good show overnight we'll see how Bears against employment report 9859 which would qualify for for ending the decline for satisfying pressure except not likely on Friday so we had talked about room down to Below in fact we've extended to 9450 already so I suspect you're headed into as well and I can't really look at the bottom silver which tested its 1705 4711 crude oil confirmed today would be bullish that puts a lot of pressure on sellers on this barrage pattern to reassert itself if this Barry's battery asserts itself because it's on the precipice of being thoroughly invalidated by are closed today it oughta be a pretty spectacular invalidation so be careful of that and if the cell cycle triggers should be pretty aggressive right I'm going to be recording here and I'll be commenting on or at least annotating the employment situation report and then see if the open right everyone good luck today oh don't forget Saturday review tomorrow

Overnight highs never retested. Firming off of 2370.00 had greeted the Employment Situation report. Its reaction surged to 2376.25. Drifting into the open still gapped up to 2373.50. But that was quickly extended down 6 points to 2367.75. Which is still a bias-up. Actually, the open had been retraced up to 2374.00 before 10:15. The 2370.75 bias-up target was also exceeded to renew the bias-up signal, next targeting 2377.50. Which hasn't prevented dipping deeper. The 2365.75 bias-up signal was itself tested, and now retested by 1 point. "Counter-bias trending" is doomed to failure for originating during a bias-up environment. Meanwhile, there's room down to lower prior highs and a gap in the 2361.00-2363.00 area. Back above 2368.25 would start to signal momentum reversing up, which could extend through the noon hour.

FRI afternoon signal (triggered at 1:20 ET) SPX ES Bias-up: above  2376.00 2372.25 ...would target  2382.00  2378.50 Bias-down: under 2368.50  2365.00 ...would target 2364.50  2359.75 Signal status: BIAS-DOWN, BIAS-DOWN TARGET MET FAQ 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.

Bias-up environment's lapse hasn't been bullish. The post-open pullback held one test of the 2365.75 bias-up signal. Then it was probed by 2 points, but only briefly as that also held through the bias environment. Then the bias environment lapsed, and 2365.75 was no longer required to hold tests. The next test came during the noon hour, and quickly extended to test this afternoon's 2359.75 bias-down target. The bias-down target held its test to avoid renewing the bias-down signal. It's still a bias-down environment, and remains vulnerable to extending down anyway. The eventual objective would be to retest oversold RSIs at yesterday's 2351.00 low. Probably not as one leg, i.e. not as an air pocket. This being a Friday afternoon, sponsorship for trending tends to be difficult to attract. So, recovering back above 2365.00 would start to suggest momentum is reversing up. The next higher objectives starting at 2377.50 need not be tested today.

The relentless overnight rally up to  2376.25 was captured by the intraday open. Post-open action caged it, becoming easy prey for the afternoon's sellers. But the afternoon's attempt at killing the beast did not succeed. Not for lack of trying -- the 2359.75 bias-down target was met. But it was met prematurely, which essentially marginalized sellers for the day. Having been marginalized, albeit only essentially and not utterly, it was sellers' turn to be exploited. Recovering the 2365.75 bias-down signal coming out of the afternoon's bias environment trended up relentlessly into the close. RSIs diverged negatively into the bounce's 2370.00 peak. Friday was a second consecutive positive close. It was the first in seven sessions not to probe fresh lows intraday. And it creates a special setup that can launch a retest of the prior week's highs. (I'll describe its parameters this weekend*.) Details and other markets coverage are discussed in the post-market Wrap recording here.

*JOIN US FOR THE SATURDAY REVIEW AT 9:30AM ET... LOOK FOR AN EARLY MORNING EMAIL WITH ITS LINK.

MON morning signal (triggered at 10:15 ET) SPX ES Bias-up: above  2377.00 2373.50 ...would target  2382.50  2379.00 Bias-down: under  2369.00 2365.50 ...would target 2364.00  2360.50 Signal status: NO-BIAS FAQ 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.