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) Sunday night extreme volatility in the absence of controversial headlines nevertheless swung 10 points, 26 points, and then 31 points -- all well before midnight. The intraday volatility foreshadowed for Monday began by gapping down 9-11 points, still well above the 3303.50 overnight low, to relevant 3316.50 support. Surging back into positive territory above 3325.25 through the opening 15 minutes of volatility marginalized sellers. The morning's 3341.50 highs was later exceeded when the afternoon bias environment exit extended to a new high close testing 3353.50. Overnight action's new info... (nearby chart is last intraday session and Globex) The first hour of Globex consolidated back down to almost 3349.00 before suddenly resuming Monday's rally. Attacking 3365.00 2-1/2 hours later suddenly peaked. Narrow ranging through midnight broke lower into and out of Europe's opens, almost touching 3355.00 as support. Its reaction just probed back into the high's narrow range up to 3363.00. If, then... (notes to accompany the Tour recording) Complexity to last night's initial rally makes 3364.75 a "new Globex trend extreme." It now replaces last week's 3357.75 overnight high as requiring intraday retest. Retesting it today is likely since yesterday afternoon's rally gained traction for its effort. The setup wasn't optimal, but it makes this morning likely to be defined above yesterday's highs. Already breaking lower through Tuesday's open could trend back down through the morning, but that reversal attempt wouldn't be very credible if the earlier Globex low and this morning's bias-up signal are holding as support. Remember from this week's Saturday Review that neutralizing upside attraction without replacing them would now be vulnerable to reversing down, possibly aggressively. Otherwise, 3362.00 is the room for noise above the rally's 3355.00 objective, and closing above it would next target 3391.00. First Trade... (preliminary indications for the Bias parameters) Exiting the open at 9:45 above 3357.50 would be likely to exceed the 3354.25 bias-up signal at 10:15. Exiting the open under 3350.50 would be unlikely to trigger bias-up.

Rewarding yesterday afternoon's traction. Probing the 3364.75 overnight highs pre-open got up to 3367.25. The 3366.25 collapsed on the way down to 3359.25. That was the Opening Thrust, and it tested 3364.75 support -- now "lower prior highs" -- and the 3362.00 bias-up target's support. They held through the opening 15 minutes of volatility at 9:45 which had recovered back above them to 3365.00. The open's setup was a helpful complement to yesterday afternoon's rally having gained traction for its efforts. That setup had made this morning likely to develop in positive territory. Combined, the rally has extended even higher to 3374.50. Now a gap-and-go setup may be forming. Extending the gap up and maintaining it through at least the 11:30 bias environment exit would qualify. Only hovering around this morning's highs would complete the setup. A pullback would be likely tomorrow before ultimately rewarding this morning's buyers with new highs. Trending back down this afternoon would disqualify the setup. Speaking of which, back under 3369.00 would begin signaling a correction of this morning's rally, which currently has no "unfinished business" above to inhibit sellers once the bias window begins lapsing.

TUE afternoon signal (triggered at 1:20 ET) SPX ES Bias-up: above 3372.25 3370.75 ...would target 3377.50 3376.00 Bias-down: under 3361.75 3360.25 ...would target 3355.50 3354.00 Signal status: NO-BIAS . 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.

Gap-and-go got up and went. A gap-and-go setup forms at first from gapping up and extending higher through the bias environment -- or at least maintaining the gap up through the bias environment. The setup completes by hovering at or around the morning's highs through the close. The 3366.25 open had already reacted down to 3359.25 from gapping up, but that was recovered through the opening 15 minutes of volatility. It didn't prevent the bias environment from probing new highs up to 3374.50, but it did raise suspicions that this afternoon wouldn't complete the setup. Exiting the bias environment back under the 3366.25 open all but rejected the gap-and-go. Now this afternoon's no-bias environment is attacking the lower-end of its range at the 3360.25 bias-down signal. Its test should define the window's lower-end until the bias window begins lapsing. Then it's free to give way to 3357.00 and possibly lower. There's otherwise no requirement to resume this morning's rally.

Tuesday's gap up immediately thrusted down to test at least Monday night's 3364.75 "lower prior highs" as support down to 3359.25. The opening 15 minutes of volatility recovered the 3366.25 open to signal higher highs would follow. After all, Monday afternoon's rally had gained traction, suggesting Tuesday morning would develop exclusively above prior highs. Extending the recovery up to 3374.50 quickly peaked, but the 3366.25 open held as support until the bias environment began lapsing at 11:30. Entering the noon hour under the 3366.25 open prevented a bullish gap-and-go setup from forming. It also opened the door to the afternoon probing lower, which it did, down to 3351.75. The dip touched a prior session's range, so now Tuesday's 3366.25 gap up above all prior highs becomes "unfinished business" that requires being filled. Tuesday afternoon's pullback ultimately prevented closing above 3361.00-3362.00, which would have put into play 3391.00. The signal remains active if triggered, Wednesday or later. Meanwhile, a deeper pullback could easily recover intraday from "lower prior highs" at 3346.00 or 3341.00. 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 3365.25 3363.75 ...would target 3371.25 3369.75 Bias-down: under 3351.75 3350.25 ...would target 3345.50 3344.00 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.