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... Monday morning's drop to 2795.00 was signaled by the Globex setup -- reversing an overnight probe of fresh highs up to 2709.00 to open back under the 2803.75 earlier overnight low. The morning remained under bearish pressure. The bias-down signal narrowly avoided being touched or triggering, so no other objective above or below was put into play. And later tests of the bias-down signal throughout the morning were absorbed. Positive territory held as resistance to a noon hour bounce, but the bounce's failure only attacked the morning's low. One more bounce stopped short of signaling a hold-long, and the cash session ended at 2800.50. Overnight action's new info... Blipping up to 2801.25 after the cash session close was reversed sharply down to 2795.00 as news leaked of AMZN web site problems and NFLX reported earnings difficulties. Globex initially recovered to retest 2801.25, suggesting that participants view the AMZN/NFLX problems as localized to the companies. Reversing back down into and out of Europe's opens to a fresh low at 2790.50 may be suggesting that ripple effects are coming anyway (I expand on this in the Market Tour recording). Bouncing to 2797.75 has reacted down almost entirely back to the low. If, then... Having probed overnight under yesterday's low, opening back above yesterday's low and holding it as support could Isolate overnight sellers. The potentially bullish setup may be the only alternative to extending yesterday's intraday weakness today with potential down to 2781.25. So, triggering bias-down, or not, may tell us everything about the balance of today's session. First Trade... [Click here to view the Bias parameters] Exiting the open at 9:45 under 2792.50 would be likely to trigger the 2794.75 bias-down signal at 10:15. Exiting the open above 2797.50 would be unlikely to trigger bias-down.

Post-open rally returns to positive territory. A fresh low before the open came within 2 ticks of this morning's 2789.25 bias-down target. Rallying into the open and through the opening 15 minutes of volatility was testing the 2794.75 bias-down signal. That had extended to 2798.00 when "no-bias" triggered. Having held a test of the bias-down signal, an offsetting test of the 2803.50 bias-up signal is in-play. Already probing higher since 10:15 makes the upside objective highly likely to be met sooner rather than later. Nevertheless, back under the 2795.00 aera would start to signal the bounce had failed. Natural resistance at yesterday's 2800.50 cash session close is now being touched, after trending up relentlessly for an hour. Any relief rally from Fed Chair Powell's opening remarks is probably waning.

TUE afternoon signal (triggered at 1:20 ET) SPX ES Bias-up: above 2807.50 2809.00 ...would target 2815.25 2816.75 Bias-down: under 2799.75 2801.50 ...would target 2793.75 2795.50 Signal status: BIAS-UP 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.

Still on the open's buy signal. Opening at 2791.00 ultimately held a test of this morning's 2894.75 buy signal through 10:15. That put into play an offsetting test of this morning's 2803.50 bias-up signal. The objective was probed up to 2806.75. A dip touched 2803.50 and resumed the rally into the noon hour. And out of it. This afternoon's 2809.00 bias-up signal has triggered, putting into play its 2816.75 bias-up target. Already, 2814.00 has been touched. A lot of calculable buying pressure is being satisfied by fulfilling objectives and targets. Bigger picture structural objectives are being neutralized at 2809.00 and 2813.00 prior highs. No sell signal has triggered, but direction can reverse quickly when sponsorship starts waning. Back under 2809.00-2810.00 would start to warn of a different sentiment forming. But the trend otherwise remains intact and up.

Testing the rally's 2809.00 target Sunday night would have sufficed for fulfilling it, if Monday had reversed momentum down. But an intraday test of the target remained in-play otherwise. And potential for probing higher objectives at 2813.00-2816.75 remained intact, too. But Monday's closing action had narrowly avoided triggering a hold-short setup. So, Tuesday was no more likely to trend up than to reverse down. It reversed down, probably less from NFLX and AMZN technical glitches and much more so due to Fed Chair Powell's day-one congressional testimony. (NFLX and AMZN recovering intraday didn't hurt, although NFLX bounced only to its resistance at the sell signal identified during this weekend's Saturday Review.)

Speaking of the Fed... Day-two of the Fed Chair's congressional testimony rarely duplicates day-one. Comments are already discounted by the second day, including anticipation for the second day to follow-through. More often, the Fed Chair walks-back various comments that were misinterpreted or overly discounted.

Anyway, dipping overnight to within 2 ticks of the morning's 2789.25 bias-down target got a lot of selling pressure out of the system. Recovering the bias-down signal in time to avoid triggering then put into play 2803.50. And triggering the afternoon's bias-up put into play 2816.75. The afternoon's bias-up target was met to within 4 ticks at session highs, while at least 1-minute RSI diverged negatively. Its reaction down closed back under 2813.00. Closing under 2809.00 after probing 2813.00 would have reversed momentum down. It hasn't, but probably will if the rally's momentum isn't restored immediately Wednesday. Which will be interesting as the WedEX setup forms into the close. Details and other markets coverage are discussed in the post-market Wrap recording here. Monitor overnight Globex trading in the chaRTroom here.

WED morning signal (triggered at 10:15 ET) SPX ES Bias-up: above 2814.50 2816.00 ...would target 2821.75 2823.25 Bias-down: under 2806.00 2807.75 ...would target 2798.25 2800.00 Signal status: LATE NO-BIAS,  TESTED BIAS-DOWN SIGNAL 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.