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... Already retracing Monday's late rally before Tuesday's close, the attraction below had been neutralized. It was a pretty big rally, and so a big retracement. And there were many other big rallies and retracements throughout the day. The last rally was big, and gained a little traction, but it was retraced just enough to close back within the day's wide range -- leaving overbought RSIs outstanding at its 1863.75 high. Overnight action's new info... Room for extending the Tuesday's late pullback to 1840.00 was exploited down to 1838,50. Twice. Already rallying into Europe's opens, only a blip-down had to be absorbed before surging to 1870.50. the surge is being consolidated back down to 1864.50 If, then... The next higher objective put into play yesterday afternoon was a test of Friday afternoon's 1868.00 "higher prior lows." Done. The only challenge now is the same challenge as at yesterday's open -- already having fulfilled its upside attraction. The gap back to Friday's 1873.25 and 1875,50 closes could be filled, too. It's not required, but the potential may be enough to encourage extending the rally to test 1881.00 and 1888.00. Fed Chair Yellen's congressional testimony may also be a challenge, or an accomplice. First Trade... Exiting the open at 9:45 back under 1856.50 would be unlikely to exceed the 1861.25 bias-up target at 10:15. Bias signals are otherwise well out of range currently.

Yellen's pre-open release kept something on the table. It wasn't just scraps, but it's now gone, nonetheless. The pre-open test of 1857.25 support was retested post-open down to the 1855.50 bias-up signal. Its support held, and the 1861.25 bias-up target was exceeded through 10:15 to renew the bias-up signal. Friday's "higher prior lows" around 1868.00 had not been tested post-open. But now overnight highs have been exceeded up to 1877.75. Several fibonacci extensions clustered there to trigger my warning in the chaRTroom that a pullback had become likely. It had no particular expectations, whether shallow or deep, but it has proved to be the latter. Its 16-point reaction is testing 1859.40. Meanwhile, the pre-open cooler from Yellen that was bullish from a contrarian perspective has been fulfilled. Even the gaps back up to Friday's 1873.25 and 1875.50 closes have been filled. Extending higher to 1881.00 and 1888.00 is not assured, but at least a bounce to 1868.00 is somewhat likely. Exiting the bias environment at 11:30 back under its 1861.25 bias-up target would undermine the upside momentum. Under the 1855.50 bias-up signal could reverse it down. In case you haven't yet grabbed it off the blog, here's the link to this morning's pre-market Tour.

WED afternoon signal (triggered at 1:20 ET) SPX ES Bias-up: above 1873.50 1867.75 ...would target  1878.25  1872.75 Bias-down: under 1861.75  1856.50 ...would target 1856.00  1850.50 Signal status: LATE NO-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.

Unfortunately, I cannot get the remote machine to launch the Anymeeting software. I'll get it running this evening, and I apologize for the issue.

Th 3:10-3:20 window did what the bias environment exit and final hour entry did not. It came alive with an aggressive dive to new lows. It was the least optimal timing, so the least reliable. But it did prevent being range-bound and firming. And its reward was to fill the gap back down to yesterday's 1848.00 close down to 1845.50. Details and other markets coverage are discussed in the post-market Wrap recording here.

Monitor overnight Globex trading in the chaRTroom here.