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

CHARTROOM LINK (pre-open Market Tour begins at 8:55 ET)

Through the prior close... After bouncing from an overnight slide, Tuesday's open was flat with Monday's 1936.50 futures close. The slide resumed anyway, to 1919.00 in the morning and then much later down to 1916.00. Not too late for 7-1/2 point bounce, or for the futures close to retrace it all back down to 1916.00. Overnight action's new info... Tuesday's late drop extended down immediately to range narrowly around 1914.00. Bouncing 4-1/2 points resolved down to attack 1909.00. Bouncing 11 points to a fresh high was also temporary until Europe's opens. Its reversal has extended sharply lower to 1896.00. If, then... Monday's high left outstanding overbought RSIs requiring a retest at 1944.00. The gap back up to its 1942.00 cash session closing equivalent is an attraction, too. An opportunity gap down irrecoverably Tuesday was rejected. So, the subsequent downleg's context is of a temporary correction. Testing "lower prior highs" as support is not unusual before recovering. Problem: 1914.00 was the lowest lower prior high with potential to be tested, and likely to launch the high's retest. But the overnight action has fallen well under it. The extreme sentiment of relentless overnight trending is often a sentiment extreme that reverses direction at the open. The window for that isn't very wide, and not very forgiving -- extending down post-open could double the overnight slide by noon. First Trade... Exiting the open at 9:45 above 1905.00 would also likely recover the 1908.00 bias-down target by 10:15 to avoid renewing the bias-down signal. Exiting the open under 1901.00 would be likely to extend down to 1890.00.

Opening dip reacts up a little, shuts down a lot. Opening at 1900.00 was sent to fresh lows testing 1895.00. A reaction up tested 1898.00, stopping 1-2 ticks short of a buy signal before reacting back down. Being the 9:45 bar, it neither held nor rejected 1898.00. But being 9:45, no already recovering made further downside likely. Fresh lows did eventually extend down to 1888.00. Choppy action since then could form a bottom back above 1891.50 and 1895.50. Otherwise, the next lower objective is 1884.00.

WED afternoon signal (triggered at 1:20 ET) SPX ES Bias-up: above  1908.00 1905.00 ...would target  1914.00  1911.00 Bias-down: under  1901.00  1898.00 ...would target 1895.50  1892.50 Signal status: noN-BIAS, TESTED BIAS-UP SIGNAL 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.

Plenty of room to the upside. Extending down overnight was already stretching the correction scenario. Extending down this morning jeopardized recovering altogether. Extending down to 1890.00 helped to restart the recovery potential. Bouncing back to 1898.00 helped to seal a bottom. Exiting the bias environment probing fresh highs made it formal. Now after ranging around the afternoon's 1905.00 bias-up signal, the afternoon's noN-bias environment is breaking higher. The 1914.00 lower-prior high that could have ended the overnight slide is now being tested as resistance. Exiting the bias environment in rally mode could recover the balance of yesterday's drop before today's close. Pullbacks holding 1909.50 would remain likely to extend the recovery. Back under 1905.00 would start to suggest otherwise.

THU morning signal (triggered at 10:15 ET) SPX ES Bias-up: above  1930.25 1927.25 ...would target  1937.00  1934.25 Bias-down: under  1920.75  1918.00 ...would target 1915.50  1912.50 Signal status: noN-BIAS, TESTED BIAS-UP TARGET 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.

Haven't seen a Wreversal Wednesday in awhile. Trending convincingly during the morning before an entirely different picture emerges into the close. There is no "unfinished business" below. Not recovering above 1898.00 through the open had required trending down even deeper to 1890.00 to satisfy the overwhelming selling pressure. Probing under it continually overlapped it without breaking lower. The recovery gained traction for its effort, by exiting the bias environment above the noon hour's high and trending up to fresh highs through the 3:10-3:20 window. Rewarding the recovery's sponsorship Thursday morning is likely, so long as the open isn't rejecting the recovery by gapping down too deeply. Regardless of Thursday morning's action, Wednesday's high touched last Wednesday's 1927.25 high. That was the "pivotal high" prior to Monday's 1943.75 actual high. Just touching the pivotal high now requires also touching the actual high. Recall that the drop from Monday's close was always considered only a temporary correction. The timing of its origin, the high's overbought RSIs, the high's opening gap up... Wednesday's recovery is in-line with this context. So, higher highs remain likely up to 1846.00 and potentially also to 185.00-1853.00. Details and other markets coverage are discussed in the post-market Wrap recording here.

Monitor overnight Globex trading in the chaRTroom here.