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... Sunday night's gap down had extended overnight to fulfill the decline's 2327.00 and 2317.00 objectives. Monday's opening dip attacked the overnight low closely and briefly. The balance of the session rallied 23 points -- and still remained in negative territory. Buyers gained no traction for their effort, which peaked upon touching the afternoon's 2341.50 bias-up target. Overnight action's new info... Monday's last-minute reaction down to 2337.00 wasted no time starting to recovery. Touching fresh highs at 2343.00 had dropped to 2339.50 through Europe's opens. Two bounces since then have returned to 2339.50, and now through it to at least 2338.75. If, then... No "unfinished business above" Monday didn't prevent probing higher overnight. The gap back up to Friday's 2342.00-2345.00 close is a natural attraction post-open, and not only overnight. An attraction below is the gap at Monday's 2321.00 opening gap down. Having closed above 2331.00 after testing 2317.00 2327.00 intraday, any dip Tuesday is likely to recover -- whether from 2321.00 or 2311.00. Otherwise, gapping up to and through 2342.00-2345.00 could extend yesterday's post-open recovery without delay. First Trade... [Click here to view the Bias parameters] Exiting the open at 9:45 under 2340.00 would be unlikely to trigger the 2342.25 bias-up signal at 10:15. Exiting the open above 2345.00 would be likely to trigger bias-up. 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 welcome it is Tuesday San Francisco's Morning Market to her not a lot going on but there's some specific action that isn't going on overnight remember that yesterday was greeted after gapping down there was a Sunday night Gap downtrend it down through or 223 2770 gave way to 2317 within three types of the way open tested it as we discussed yesterday at this time during the market to are there were some suggestions among different asset classes that there was some Peak sentiment at the time and the balance of the session for us then send it back up now because of one thing because she s did not recover 2327 on a timely basis didn't recover it to the first hour everything above it later is potentially week and its sponsorship not necessarily all the way and as it happens testing 2317 & 2327 recovered to close above 2331 which suggests that strong hands are coming in here so that's not enough to reverse the trend back up and we're not ever going to get a signal that in my methodology that the trend is reversing backup on the same day that the prior Trend makes a new extreme but yesterday did make a new extreme that's because I don't have any instances or at least overwhelmingly there just don't new trend extreme section also being able to successfully reversed or signal that the Traders are so we have no requirement to retest Sunday night Slow yesterday other than the gap down yesterday's gap down to 2321 from above and until closing above some prior hi that's a very real risk or or a traction in any case not a requirement had any eBay for requirement at all it's not a requirement in any certain time frame so what does that mean if the open today's open can get out of other prior I like Fridays last Road in High River that bounce that we knew had done away with all the expended all that pent-up I'm pressure had enabled Sunday Night Sky app down Sunday nights drop if today's open can get back out about that because yesterday's rally didn't get any traction it warded it's fires but didn't attract new buyers new sponsorship the bias environment lapsed under the new towers high in the final hour wasn't entered above the new towers High others so the only way to reverse or to extend higher today and this morning prior to late afternoon at the earliest is to Gap or at least durably if we extend her anyway without giving up above a fryer high and Trend up this morning it'll probably be doomed to failure later in the day so the market generally we'll take care instead take advantage of the time that it now has and back and fill or utilize some of their supposed to close there's an attraction to 2321 below yeah the market isn't rallying overnight sufficient to Gabba it's not I may try an extended higher yesterday after meeting the 23 4150 bicep Target and we acting down to that overnight action extended higher Gap that I just put it out back to Fridays close the cash fashion clothes 42 the Futures close 45 keep within a point of fully were tracing the Futures close before dipping back down and a little bit deeper so there's a lot going on over relatively narrow range and not a lot of volatility extending little bit higher when tracing that but it's interesting what there is not and what there is not a hug a pup indicated at least not at this moment I got up indicated above the Friday - 45 for instance without that the morning is going to be more vulnerable the backing and filling 221 or toward 21 and presumably but not reliably just too they're all right let's look at other markets any questions but please go to the Euro not represent the complex yesterday because it was basically flat to lower and it's been even lower overnight standing the cell signal the pound extended higher yesterday we really didn't have to but it did create this anchor this Gap up above all prior has that I want to be were tested From Below so with that context we know at least at this point any pull back is not durable Looney operating off of it so signal flex waiting around it's so stage and then the Euro which also created this Gap up that will want to be were tested From Below its only objective that we had outstanding was 109 in this pattern and we had actual timing putting that in the play with Thursday's dip and overnight Wednesday night having held a test of lower price but now there's a gap up they don't want to be were tested From Below but we're also monitoring for is if there's a second consecutive her clothes confirming what would otherwise be a break out yesterday I'm not expecting that confirmation silver object is 1790 and there's a higher Prayer live 1830 1835 and then french fries above that so long as 1790 holds as support for is not broken from above and just trading flat not really slow at this stage gold trading off a little bit but as well it's not reversing the trend and it had a confirm break out last week that's now been fulfilled with an eventual third higher close and probably going to extend higher that fryer hi that was a morninghigh that it's still follow to confirm break out that never produced its third eventual higher close Long Pond is in an interesting spot because this is Mike highest calculus Target 152 that remained in play because another Pool bathroom it had hell has had two prior to that and so this one was a little more aggressive than the others you can see that there was no more contemplation as a patient before extending hire in to 158 to the other objectives but 152 was greeted by gapping up this is one of them actually have been tested overnight this is one of those that we looked at yesterday morning at this time and so again these asset classes at work testing objectives that had potential the hold and suggesting them at stocks were going to be reversing the other way as well so the long run he'll and also held it so but I just stood up to be at fullback limit that did create a gap at the book prize I don't want to be were tested From Below that's not to stay overnight but intraday and Below means from 150 107 this is the high of this whole range here 2106 actually and the deepest that they are actually got was 108 so bouncing back to this open back to yesterday's open 15126 would be premature as far as neutralizing it's attraction at this point you a little bit deeper dip first crude oil delayed exploiting the bottom that was trying to form that's been trying to form by holding that prayer low and slow playing a recovering at least not letting sellers or gain traction delayed that for the sake of absorbing a cat down yesterday which is fine for only so long the Gap Town was absorb the optimism was restrained didn't reverse it into positive territory left some unfinished business of the attraction back to Fridays close so it doesn't that's not allowed to extend indefinitely Or persistent definitely that really needs to be exploited much sooner rather than later gapping up two or not yet through that prior or gapping up through it and then dipping to retest this lower range 48 for instance before actually closing about 4850 that would be optimal to form in the bottom but it has to happen pretty much has to happen today there's just not much opportunity to for the delay in here overnight and you can see that this is nothing in this pattern that alright otherwise before the open.

Pre-open drop's space filled by big swings. Rallying this morning was already unlikely. Yesterday's rally had peaked upon fulfilling its buying pressure at the the afternoon 2341.50 bias-up target. And the intraday rally gained no traction. Not gapping up above prior highs would make downside attractions more likely. Reacting down from probing fresh highs overnight greeted the open at 2334.75. A post-open bounce had room up to 2339.00-2340.00 for another reaction down. Which it did, touching the 2333.50 bias-down signal. Then headlines hit. A strong econ report, and news of another healthcare push, triggered a surge up to the morning's 2342.25 bias-up signal. Which held. Reacting down yet again has tested 2336.00. Any lower would suggest a new downleg underway. Meanwhile, a bounce now has room up to 2341.00 before suggesting a bigger upleg. Both are likely to hold while awaiting a press conference starting soon. I'm inclined to wait, too.

TUE afternoon signal (triggered at 1:20 ET) SPX ES Bias-up: above 2354.00 2351.75 ...would target  2360.25  2357.00 Bias-down: under  2349.75  2346.50 ...would target  2343.75  2340.50 Signal status: BIAS-UP 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.

WED morning signal (triggered at 10:15 ET) SPX ES Bias-up: above 2361.25 2358.00 ...would target  2367.50  2364.25 Bias-down: under  2353.25  2350.00 ...would target  2347.00 2343.75 Signal status: NO-BIAS, TESTED BIAS-DOWN SIGNAL 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.

No-bias trending pushes higher. This morning's 2342 25 bias-up signal didn't trigger at 10:15. It should define the window's upper-end if tested during the no-bias environment. Probing above it is called "no-bias trending" and requires being retraced to at least 2342.25 -- often back down to the 2339.75 10:15 print.

None of which has prevented this morning's no-bias trending from extending higher. This afternoon's 2351.75 bias-up signal has triggered, and its 2357.00 bias-up target is now less than 2 points higher.

There's no particular timing to fulfilling the required retracement back to 2342.25. And now unfinished business above would be left outstanding at 2357.00. Unless 2357.00 were tested first.

There's another influence lurking. I just described how this morning's rally is premature for originating during a no-bias environment. It's also premature since yesterday's rally had gained no traction for its effort. So, rallying before late-afternoon is vulnerable to retracing back through its origin. Rallying in spite of bearish influences may be weak-handed sponsorship, and creating pent-up selling pressure. But meanwhile the bias-up is in-play. And not reacting down to its 2357.00 target could extend even higher.

"No-bias trending" isn't usual, but it's normal for strong hands to occasionally not defend against a weak-handed breakout. Retracing the broken bias signal is the normal consequence. Tuesday morning's no-bias trending was unusual, since both bias signals had been touched before triggering no-bias. And its consequences remain outstanding. At least Tuesday morning's 2342.25 bias-up signal requires a retest, if not also the 10:15 2339.75 print. Both due to Tuesday morning's no-bias trending. Wednesday morning is vulnerable to trending back down, anyway. Tuesday afternoon, like Monday afternoon, didn't gain traction for its rally. The afternoon's 2357.00 bias-up target was met and held, probed too shallowly to create any anchor. The bias environment exit reversed back down through the close to 2351.00. Tuesday overcame the lack of traction in an atypical way. Wednesday could overcome it by gapping up above Tuesday's 2360.50 high. There's essentially an air pocket up to "higher prior lows" at 2369.00. Any less opening strength would be likelier to extend the pullback. Details and other markets coverage are discussed in the post-market Wrap recording here.

Monitor overnight Globex trading in the chaRTroom here.