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 **This is NOT the direct chaRTroom link

Through the prior close... (summary of last Market Wrap) The pullback's next lower objective at 3656.00 was attacked to within 2 ticks by Sunday night's 41-46 point opening plunge. Reversing up immediately trended well into positive territory overnight. Monday's open also collapsed about 30 points before it also reversed up to probe well above overnight highs intraday. Reversing down from the afternoon's 3777.00 bias-up target extended to 3757.00 through the close. Overnight action's new info... (nearby chart is last intraday session and Globex) Yesterday's rally eventually resumed, consolidating off of 3792.00 through midnight, and then testing 3804.00. Those are the 38.2{faed0d6dca04cec8b6b7985efddb9b0651107a3aebb05f69f0166038b8c951f6} and 61.8{faed0d6dca04cec8b6b7985efddb9b0651107a3aebb05f69f0166038b8c951f6} retracements of Thursday afternoon's slide, and the latter is now reacting down. If, then... (notes to accompany the Tour recording) Yesterday's rally satisfied its buying pressure, and gained no traction for the effort. Extending higher this morning requires extending a gap up through relevant resistance. Gapping up is all but ensured. Relevant resistance is being tested overnight at the 38.2{faed0d6dca04cec8b6b7985efddb9b0651107a3aebb05f69f0166038b8c951f6} and 61.8{faed0d6dca04cec8b6b7985efddb9b0651107a3aebb05f69f0166038b8c951f6} retracements of Thursday afternoon's slide. Trending up through the first-15 remains to be seen. Even the most bullish resolution could be preceded by backing-and-filling this morning. Back under 3788.50 would start targeting a test of Friday morning's 3770.00 highs. They were still being tested yesterday afternoon, and could be tested while maintaining the 3823.50 objective and potential to new highs. Yesterday's last-minute dip could be retraced before suggesting the recovery is failing. Otherwise, extending higher this morning doesn't need a delay. Bias Parameters... (linked here)

5-stage correction underway. Market Tour pointed out the likelihood for a rally to begin immediately, if at all, which is why I was willing to take an immediately actionable buy signal. Ranging narrowly into the 3799.25 open did surge immediately to 3811.00. But, wait, there's more. Trending higher up to 3820.75 formed a Rising Wedge. And although a little late, it was exited as aggressively as it was entered. That's stages 1-3 of a 5-Stage Pattern. The 4th stage's plateau was brief, but it has reversed down to 3818.00. Its likely objective is 3809.00-3811.00. Otherwise, back above 3827.50 would signal the rally is resuming. The gap-to-gap projection would next target 3834.00, and potentially 3843.00.

TUE P.M. BIAS

At 1:20 the P.M. BIAS is BIAS-UP: above 3839.00 signal would target 3847.00. BIAS-DOWN: under 3825.75 signal would target 3812.75. NO-BIAS: between both signals. TUE afternoon signal (triggered at 1:20 ET) SPX ES Bias-up: above 3846.50 3839.00 ...would target 3854.50 3847.00 Bias-down: under 3833.25 3825.75 ...would target 3820.25 3812.75 Signal status: NO-BIAS . BIAS VIDEOS... INTRO // EXAMPLE

Gap-and-pause forming? Did excessive optimism prevent a healthy correction from forming? Now another setup is suggesting consequences -- a pullback day tomorrow. First there was a late 3rd stage surge to 3829.00 of a 5-Stage pattern. It had the appropriate measurement relative to the 1st stage's surge from 3799.00, but its 5th stage reversal only retraced the 3rd stage's surge from 3817.50. The 2nd stage's Running Correction was never retraced before extending higher to attack 3836.00. Meanwhile, that pattern may be forming a Gap-and-pause setup. That would require this afternoon to range sideways, with room down to 3813.00. A probe of fresh highs would be rejected back into the range. Also, tomorrow would be a pullback day, backing-and-filling or somehow else correcting the recovery underway.

Already trending up overnight from Monday's 3765.00 close broke higher at Tuesday's 3799.00 open, and trended up through the morning to attack 3836.00. That being the basis for a Gap-and-pause setup, the balance of the session complied by only hovering sideways at the morning's highs. Only a last-minute effort broke lower to 3814.00 before snapping back up through the close. The Gap-and-pause setup now assumes that Wednesday will be a pullback day. However shallow or aggressive, the rally should resume no earlier than Wednesday afternoon, and no later than Thursday afternoon. The minimum reward for having absorbed Sunday night's test of 3656.00 was to completely retrace that leg's 3823.50 origin. Now having fulfilled it, the reward for resuming the rally is to the next prior high, which in this case is new highs. A prominent candidate for the pullback day is the 3781.00 Mon-Tue gap-to-gap proxy. That's the singular representation of a 3778.00-3786.25 range. Another candidate is 3742.00, before suggesting a more substantial downleg underway. 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 [NOT the direct link].

WED A.M. BIAS

At 10:15 the A.M. BIAS is LATE NO-BIAS, TESTED BIAS-UP SIGNAL BIAS-UP: above 3825.25 signal would target 3834.25. BIAS-DOWN: under 3812.75 signal would target 3804.50. NO-BIAS: between both signals.