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... The new quarter got off to a rocky start. Not that the prior quarter ended all that awesomely. Friday's inside day had hovered at the week-long rally's highs. So, Monday morning's 20-point plunge was quite a juxtaposition. It began at the inflection point coinciding with pivotal uptrending support. The noon hour lows neutralized all but 1 tick of attractions left outstanding last week down to 2339.75-2342.25. The afternoon's bounce up to 2356.00 closed back above the pivotal uptrending support's 2348.75 connector, suggesting that sellers attracted no new sponsorship. The recovery did gain traction for its effort. Overnight action's new info... Essentially one-way price action has trended down through Europe's Opens to 2347.25. The reaction attacked 2352.00, still 3-4 points into negative territory, before falling to fresh lows down to 2345.50. If, then... Buyers gained traction for yesterday's efforts, so they're allowed an opening dip to absorb. Sellers didn't gain traction, so retaking control this morning requires them to maintain an immediate break. A candidate for signaling that break is being tested at the 2347.25 overnight low. It coincides with the natural support of a 61.8{faed0d6dca04cec8b6b7985efddb9b0651107a3aebb05f69f0166038b8c951f6} retracement of the consolidation of yesterday afternoon's recovery (which I describe during the Market Tour). Holding its test would be confirmed by the open recovering back above a prior high. Meanwhile, maintaining a gap under that consolidation's 2345.50 low (being touched now) would separately form a "session-long decline," all but targeting 2321.00 and possibly also 2311.00. First Trade... [Click here to view the Bias parameters] Exiting the open at 9:45 under 2347.25 would be likely to trigger the 2349.75 bias-down signal at 10:15. Exiting the open above 2353.50 would be unlikely to trigger bias-down. 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.] good morning it's Tuesday it's time for Tuesday's morning market tour and this is already shaping up to be a interesting day again just very brief context last week last Monday begin with a gap down that tested a couple of pretty relevant levels and closed back above another one indicating that the declines momentum had lapsed that in itself didn't reverse the trend up durably the transversal the signal that we got was the next morning above the bias of signal 4225 it happened prematurely during it no bias environment was too late to trigger by ass up so all that had to be retraced whatever whether it was just the morning whether it was just before the time in window ended whether it was several days and it was retraced entirely into yesterday's yesterday's little also tested the lower prioritize that Define down to 3975 actually came with a pic of that so we can't really say there's any unfinished business of that area brakes which puts into play or would put into play 2321 2317 2311 yesterday's Drop Like Mondays drop before it did test a couple of relevant levels and did clothes back above and other relevant level to indicate that the downside momentum at last it was much greater downside momentum last Monday that was absorbed yesterday just one day's worth one day preceded by Friday's do nothing day basically so it's possible as indicated by the stuff trending pivotal support his connector at 2348 75 identifies the most relevant level recovered yesterday it's possible that selling is done that momentum is ready to reverse up we know that this sponsorship is satisfied but we don't have an indication that new sponsorship has not arrived and the overnight isn't making it easier to identify that because there is a pull back pretty much Relentless pull back actually down to 4725 which happens to be a pre relevant level at least in my work it is the last swing or the untried the middle swing you got a 3-1 to 3 stage rally yesterday that consolidation phase of it as a 61 8 retrenchment that is natural support and it can be predictive if tested and other held or broken through it relevant window this isn't the most relevant window it's over night it is a relevant time of that overnight window following after UPS open but just holding it says one thing rejecting it's actually back above that consolidation and back a bit by a specific the Great is another thing because that would indicate sponsorship that arrived remember yesterday yesterday for their efforts so there is bigger stronger hands in their and they're generally going to defend against an attack like the overnight that coming in the next morning like they're going to be 23 is interested in defending and buying 2347 because yesterday so they're allowed to absorb and to is back up sellers didn't gain traction so they regain control in one way only and that is abruptly that is by either gapping down or immediately extending down through a relevant level and there's a pretty relevant level right here because yesterday's action trimmed it up into the clothes and it's counter extreme that is the bias environment slow did develop or the afternoon to develop during the by its environment at 4550 testing 46 gapping down under 46 4550 would not only indicate that sellers are we taking control but they be doing it in such a way as to gain traction themselves forming a session long to climb that setup would indicate trending down throughout the day and if this test at 4225 down to 40 doesn't suffice as though the next lower objective 2321 and probably down to 2311 comes into play so should be a really fun day it can be absorbed through the open avoid triggering by ass down resume last week's rally now that it's been presumably corrected then we've got new eyes ahead and as I speak the 4725 low the 61 a replacement as being were tested I don't see are a size being particularly kind to a this seems to be a reaction to downgrade on Google possibly to see only thing I see crossing the tape right now I look quickly at other markets and we are going to Breeze through these so that you know which missed an opportunity to rally and required were testing last week slow quickly came back down to the last week slow and is now trending lower it's trend is down the pound still has his unfinished business above but isn't in a rush to get there may be hampered by the euro which is struggling to hold its maximum pulled back denoted by the X and ended by recovering 107 58th the Looney which is breaking lower from this ongoing fluctuation at and around its cell signal to the dollar strong which took at 12:50 to buy signal that was tested Friday covered yesterday that are getting fresh pies possibly a french fry close has extended higher has extended her overnight to 1260 250 that's a gap that didn't need to be rude it's already been filled and so to return to it anyway suggest we're headed higher gold and if gold and probably silver as well breaking I remember silver tested its higher prayer Lowes at 1830 close negative but that negative close was never exploded leaving the door open to another up leg Target in the upper end up Rob of that consolidation above 1855 wish I clearly seems to be underway now Long Pond is extending higher we knew that the inflection points down the cell signals weren't likely to trigger be productive or least not for any length of time but so long as last Monday's Gap upper made outstanding it was finally filled yesterday even with the probe of Prior has so I was able to introduce the preliminary cell signal on that one 5112 wasn't wasn't even touched overnight as price has returned to at least three tests yesterday's high the trend remains up otherwise or at least a topping pattern is forming that's the most bear if scenario unless and until triggering a cell phone by the way home now becomes 151 12 maybe confirmation Elko confirmation under 150 24 but the early action is under 151 12 real quickly and then come back to the market to the es crude oils big bottoming pattern that we've been tracking that we were tracking back above its 4850 & 4930 by signals confirmed that the aid of a pull back yesterday the full-back didn't do anything it wasn't really threatened so non-event all the way little bit deeper overnight and reacting to that rejecting that it seems pretty aggressively just consider the Apex of this triangle is a critical make-or-break level to maintain the recovery and then Natural Gas struggling at 313 cell signal there's no unfinished business above there's a gap that has been filled From Below there's Fridays Gap up it didn't do anything new Sunday nights Gap up that was rejected so it's just nothing but it's about returning again to 313 it's not doing anything for the rally alright is probing lower and that's a critical level remember the overnight price action any patterns that develop overnight or influential intraday this is the es influential intraday if their influence is somehow contributing to some other price action during the opening 15 minutes that's the handle 4753 725 it is is maintained is recovered through the opening 15 minutes of volatility then it's recovered it especially if its prior High 2350 75 is also recovered to the opening 15 minutes of volatility will consider that to be a successful test if it's broke and if it's break now underway now he has maintained through the opening 15 minutes sellers will likely have retaken control alright and I will see you there before the open

Pre-open recovery gets post-open attack. The overnight dip ultimately touched this morning's 2344.75 bias-down target. It was recovered to greet the open at 2350.75. And after a dip touched the 2349.75 bias-down signal, the recovery extended to 2354.50. None of which prevented a 6-point slide to 2346.50. It was consolidated back up to 2349.75, which triggered bias-down. Recovering 2349.75 through 10:30 could have invalidated that it had triggered at 10:15. Indeed, surging through it touched 2352.50. But the 10:30 bar was still overlapping 2349.75, literally 1 minute too late to qualify. This is a bias-down environment. In fact, the bounce to 2352.50 just reacted back down 4 points. Its failure is so far only partial, and not yet printing a fresh post-10:15 low, which still allows invalidating the bias-down. Meanwhile, the 2344.75 bias-down target remains intact. This morning's dip may be absorbed ultimately, from a deeper level. But the dip must hold yesterday's lows through a relevant timing window, or else 2321.00 and lower would come into play.

TUE afternoon signal (triggered at 1:20 ET) SPX ES Bias-up: above  2360.00 2356.50 ...would target  2365.50  2362.00 Bias-down: under  2354.00  2350.50 ...would target 2349.00  2345.50 Signal status: NO-BIAS, TESTED BIAS-DOWN 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.

Morning dip retraced. Did this morning's dip leave a lasting impression? Yesterday afternoon's buyers gained traction, so they're capable of absorbing a reaction down. In fact, the morning ended unchanged from yesterday's close(s).

So, this morning's drop was retraced entirely to unchanged. Did buyers absorb it? And since the 2349.75 bias-down triggered, is it now absorbed?

Tough call, but probably not. Still overlapping the bias-down signal at 10:30 prevented invalidating it. And despite being higher, the bias environment lapsing at 11:30 was still overlapping the open's 2354.50 high. Higher still at noon, and still overlapping. Bias-down triggered cleanly. But although it hasn't since extended, neither has it been rejected cleanly. The 2344.75 bias-down target becomes "unfinished business below." Another interim rally is possible, especially so long as 2352.75 holds as support. But back under 2349.75 could resume the morning's decline.

Efforts to invalidate Tuesday morning's 2349.75 bias-down signal didn't fail for lack of proximity. The 10:30, 11:30 and noon bars each overlapped the relevant bounce limit. And each limit was successively higher. But overlapping disqualifies the attempt. So, the 2344.75 bias-down target becomes "unfinished business below." The required test of 2344.75 could be delayed by another rally leg. Last week's no-bias trending above 2342.25 wasn't retraced until after having extended higher for several days. That said, extending much higher from current levels would all but ensure probing new highs. Tuesday's late surge up to 2358.50 came too late to qualify. Aggressive behavior is necessary at this stage of the pattern to ignore the attraction below. More than optimal, gapping up Wednesday may be the minimal requirement for resuming the rally. Although an overnight dip to 2344.75 would qualify to neutralize the attraction below, not recovering it overnight would risk resuming the decline. 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 2362.00 2358.50 ...would target  2367.25 2364.00 Bias-down: under  2353.75 2350.50 ...would target  2348.25 2344.75 Signal status: BIAS-UP, BIAS-UP TARGET EXCEEDED 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.