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's 2534.00 open was essentially flat with Friday's 2531.00-2533.00 close, and with Sunday night's earlier Globex low. In the interim was a probe above Friday's high up to 2552.00, and the reversal back down from it. Continuing to reverse down through the open would form a bearish Globex-flip setup. But the open held, helped by Friday's bullish session-long rally setup still in-play. So, the Globex-flip became as bullish as it would have been bearish. Friday morning's rally resumed, trending up through the noon hour's exit. That was still 2 points short of the afternoon's 2569.25 bias-up target, which became "unfinished business" when the afternoon's dip held a test its 2550.50 bias-down signal. Meanwhile, the afternoon dip did gain traction for its efforts, and the rally's next higher target at 2548.00-2555.00 held as resistance through the close. Overnight action's new info... Gradually recovering into midnight tested 2563.00 before defensively posturing ahead of Europe's opens. The pullback to 2554.00 held and a relief rally surged to eventually probe yesterday's high up to 2569.00, neutralizing Monday's unfinished business. Its reaction down to 2560.00 has recovered to higher highs at 2572.00. If, then... (notes to accompany the Tour recording) Neutralizing yesterday's unfinished business above now relies on post-open patterns to extend the rally. That will be challenging, since yesterday afternoon's dip created a position of weakness, which suggests the attempt to resume the rally will fail. Closing back within the 2548.00-2555.00 range had avoided putting into play the next higher target at 2606.00. Closing above the 2548.00-2555.00 range today would still put the higher target into play anyway. And maintaining a gap up above yesterday's 2567.50 high -- which is also yesterday's bias environment high, after having trended down into the close -- could form a session-long rally. Otherwise, closing back under 2548.00-2555.00 would help to confirm upside momentum is done. First Trade... [Click here to view the Bias parameters] Exiting the open at 9:45 above 2571.00 would be likely to exceed the 2568.50 bias-up target through 10:15 to renew the bias-up signal. Exiting the open above 2566.00 would be likely to trigger the 2560.25 bias-up signal at 10:15.

Two competing influences battle over the open. Maintaining the open's gap up above yesterday afternoon's 2567.50 high formed several bullish setups. None of which prevented immediately reversing down to touch yesterday's high. And extending down beyond the first hour to probe the entire 2548.00-2555.00 range down to 2547.50.

So much for the session-long rally setup. It was formed by gapping up above yesterday's close, after having trended down into yesterday's close. Rejecting it by 9:45 could have become as bearish as the setup would have been bearish. Instead, the late reversal only invalidates the otherwise bullish setup. It can't be reinstated, but another bullish setup could take develop separately.

Meanwhile, traction sellers gained by yesterday afternoon's sellers had created a position of weakness. Its influence only prevents a rally from gaining traction. Closing back above the upper-end of the 2548.00-2555.00 range could still extend the rally. But closing under the 2548.00-2555.00 range's low would reverse momentum down.

TUE afternoon signal (triggered at 1:20 ET) SPX ES Bias-up: above 2562.50 2562.75 ...would target 2569.25 2569.50 Bias-down: under 2550.00 2550.50 ...would target 2542.50 2543.00 Signal status: LATE BIAS-UP . 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.

Post-open dip recovers back above prior highs. Today's great conundrum has been the open's clearly defined position of strength failing to defend its session-long rally setup from being invalidated. Gapping up and trending up through the open doesn't require extending higher immediately, but its reactions down tend to be brief and fully recovered.

This morning's reaction down was substantial -- 34 points from above 2581.00 to under 2548.00 -- and not recovered. Not, yet.

This afternoon's bias-up triggered late, but its target is being probed. The 25-point bounce from this morning's low is now testing 2572.50. That's 5 points above yesterday's 2567.50 high, whose recovery through the open has been the basis for any bullish scenario today. At least maintaining the recovery from having probed temporarily back into 2548.00-2555.00 would be bullish, but only for not letting sellers gain more traction. The bear market rally would remain intact, next targeting 2606.00. Closing above yesterday's high would be optimal, but a lot could be said for having absorbed the intraday dip.

Otherwise, another downleg upon exiting this afternoon's bias environment could be attracted back down to oversold RSIs at this morning's low. And as late as it would be, another downleg upon exiting this afternoon's bias environment would be difficult to find sponsorship for a recovery.

Tuesday's gap up above Monday afternoon's 2567.50 high formed a session-long rally setup. Immediately collapsing 34 points to test Monday's 2550.50 close down to 2547.50 seemed to dash the setup. Interestingly, with the morning's bias environment being the one exception, all other timing windows probed their prior timing window's high. So, if that's considered a successful setup, then Wednesday morning should probe above Tuesday's highs. The intraday recovery did recover the open's 2576.00 gap up. Its attraction would have been left outstanding to inhibit or at least question any interim decline. But now that is neutralized. Meanwhile, closing above the 2548.00-2555.00 range puts into play 2606.00. Closing back under the range Wednesday would not confirm the higher target, and would also reverse the trend down. Until then, the burden of proof is on sellers. 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 2576.50 2577.00 ...would target 2586.00 2586.50 Bias-down: under 2568.75 2569.25 ...would target 2561.00 2561.50 Signal status: BIAS-UP, BIAS-UP TARGET MET . 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.