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... Optimism remained alive and well at Wednesday's open, regardless of the past two sessions' fresh lows down to 2530.00. An overnight rally to 2562.00 gapped up, and extended intraday to greet the afternoon's FOMC statement probing Tuesday's 2578.00 highs. The knee-jerk reaction spiked up even higher to 2592.00. But it was doomed to failure because the open's gap up was under Tuesday's late high. The optimism was reversed back down to 2530.00, which was met on the way to 2500.00 and lower. The 2489.50 low reacted up to spend the final hour ranging back up to 2519.00, closing around 2505.00. Actively bearish WedEX was signaled. Overnight action's new info... Another bounce attacked 2519.00 before rolling over to fresh lows. The slide pierced what is this morning's 2478.25 bias-down target to 2476.00 at midnight, and bottomed there. Reacting up since then has recovered back above yesterday's lows, even attacking the upper-end of its final hour's range at 2518.00. If, then... (notes to accompany the Tour recording) A lot of relevant attractions are being neutralized, but the decline still has room down to 2453.00, A durable bottom will have formed when a couple of objectives are recovered through a couple of consecutive closes. None of which precludes another bounce, which the overnight low's Isolation setup might produce. It will need the open and then the morning to hold above yesterday's lows, and any less strength would likely resume the decline -- even a Globex-Flip setup is trying to form. So, the question is whether sponsorship for a bounce can be generated after punishing recent bounces. Since the answer is probably not, then we'll anticipate the overnight recovery failing this morning, if not already having failed by the open. Otherwise, I'm going to be suspicious of an Isolation setup, but I'll still give it a benefit of the doubt until disproved -- Santa Claus and his rallies have pulled off miracles before. First Trade... [Click here to view the Bias parameters] Exiting the open at 9:45 above 2497.75 would be less likely to trigger the 2492.25 bias-down signal at 10:15. Exiting the open under 2490.75 would be likely to trigger bias-down.

Held support, but still testing it. The potential for Isolation and Globex-Flip setups began fading when the overnight surge to 2518.00 proved excessive. The open was greeted back down at 2494.25, and it extended down another 10 points to 2484.25.

Then a bounce, back up to 2512.00. The 2492.25 bias-down signal was recovered to trigger no-bias, putting into play an offsetting test of the 2524.00 bias-up signal.

But not necessarily in a direct path up. A pullback just retested the 2494.25 open. Being a no-bias environment, there's room to test the 2492.25 bias-down signal as support. Back above 2507.50 would start to signal the upside objective's test is underway. Having said all that, having failed to form a couple of other recovery setups, we can't be surprised if the no-bias signal environment fails. Probing its bias-down SIGNAL is too late to invalidate the upside objective. Rejecting the no-bias signal now requires exiting this window back under its 2578.25 bias-down TARGET.

THU afternoon signal (triggered at 1:20 ET) SPX ES Bias-up: above 2479.50 2481.00 ...would target 2490.50 2492.00 Bias-down: under 2465.00 2466.25 ...would target 2452.00 2453.25 Signal status: NO-BIAS, TESTED BOTH BIAS SIGNALS . NEW: 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.

Proximity to weekend, and to targets, suggest keeping one eye open. Holding a test of this morning's 2492.25 bias-down signal had put into play an offsetting test of its bias-up signal. The pre-10:15 2512.00 was never exceeded to confirm. And the 2478.25 bias-down signal was recovered coming out of the bias environment. So, the upside objective became moot.

And the morning's drop extended down to 2463.25. That's within 10 points of the decline's next major objective.

It's too late to fulfill an objective and then to launch a recovery. Perhaps a corrective rally -- especially considering the proximity to this weekend's illiquidity, which is largely in practice a 4-5 day weekend despite Monday's shortened session. Has everyone thrown in the towel on the mythical, proverbial Santa rally so that it can finally begin? Before we can plot out a rally's targets and trajectory, we need to confirm the decline has ended. And we can't. The recent excessive optimism warns against viewing bounces prematurely as recoveries. Bearish WedEX scheduled for tomorrow afternoon suggests otherwise, too. But we do want to be aware if the decline is waning, and it just neglected to trigger bias-down.

Thursday's open was the first in several sessions not to be greeted optimistically. Probing fresh lows overnight down to 2476.50 had recovered to form the basis of an Isolation setup. Bouncing to 2418.00 came too early to attract necessary reinforcements, and the setup failed. Its resolution was as bearish as it would have been bullish, trending down sharply to 2441.00 before the afternoon bias environment began lapsing. Its reaction up to 2490.00 held prior resistance, chopping wildly back down to 2456.00 through the close. Thursday's lack of excessive or ineffectual optimism included rejecting one or two potentially bullish opening setups. All of which suggests that the decline is nearing a capitulative or exhaustive phase, just in time for Friday afternoon's bearish WedEX influence. But I would still watch for bounces as the holiday illiquidity gets exponentially closer -- Thursday met and held decline's next major target at 2453.25, which could be leveraged for a counter-trend rally. Regardless, 2453.25, like the decline's prior objectives, didn't close above a prior relevant level (e.g. 2500.00) that could have started sealing a bottom. Anyway, trend lows don't coincide historically with expirations. None of which precludes bounces, but nothing durable is likely near-term. Details and other markets coverage are discussed in the post-market Wrap recording here. Monitor overnight Globex trading in the chaRTroom here.

FRI morning signal (triggered at 10:15 ET) SPX ES Bias-up: above 2488.50 2490.00 ...would target 2497.75 2499.25 Bias-down: under 2466.00 2467.25 ...would target 2455.75 2457.00 Signal status: LATE BIAS-UP, BIAS-UP TARGET MET . NEW: 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.