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... The week began as optimistically as they can get. Gapping up to 2755.00, and trending almost straight up throughout the session to 2788.00-2389.00. The morning segment of the rally was steeper and more productive than the afternoon, but each was relentless with relatively shallow pullbacks. "Higher prior lows" at 2775.00 was the potential objective, and it was exceeded easily and by far. No "unfinished business" was left outstanding as the afternoon peaked upon fulfilling its bias-up target. Overnight action's new info... Overnight action so far is exclusively above yesterday's range. But its initial enthusiasm -- follow-through from the intraday rally -- has been retraced almost entirely. Surging 4-5 points from the close up to 2792.50 soon extended higher to 2799.00. That was the first hour of Globex. Sideways through midnight has since worked its way back down to yesterday's close. To it, and now through it to 2785.50. If, then... (notes to accompany the Tour recording) PROGRAMMING SPECIAL ANNOUNCEMENT: I'm hosting a special introductory overview of the If Then method after Wednesday's close at 4:30 ET. Onboarding for newer subscribers, refresher for seasoned subscribers, and a good opportunity to focus on strategy and tactics as market volatility begins heating up again... Yesterday afternoon's traction signal was triggered when the bias environment's bullish exit was confirmed by the proxy window. There was one caveat, that the bias environment had only ranged narrowly sideways, mitigating the effort that traction was rewarding. So, unless still holding up through Tuesday's open, its reward of probing above Monday's highs might have been fulfilled overnight. Opening under the earlier Globex low could form a bearish Globex-flip setup that points down through the morning. By the same token, forming a Globex-flip without actually triggering it would be as bullish as it would have been bearish. First Trade... [Click here to view the Bias parameters] Exiting the open at 9:45 under 2787.50 would be unlikely to trigger the 2791.50 bias-up signal at 10:15.

Reversal setup avoided, producing fresh highs. The pre-open dip back under the 2789.25 earlier Globex low had reached 2785.50. Having probed yesterday's high overnight, maintaining the reversal through the open would have formed a bearish Globex-flip. Two hours still remained before the open, so the question I posed during Market Tour was whether the dip would be maintained. It was not. Its reaction up greeted the open at or above the 2791.50 bias-up signal. Price gradually improved -- gradually, choppily, but not steadily in contrast with yesterday's opening surge. The 2797.00 bias-up target was met and held without renewing bias-up, but its 2803.00 renewed bias-up target was met (to within 3 ticks) anyway.

All of which may have been the product of opening sponsorship, fulfilling the traction earned by yesterday afternoon's buyers. Since violating a pullback limit at 2800.50, the high was retested to within 1 tick of 2803.00. But there was no interim accumulation, and no complexity had formed. The recovery attempt was premature.

In fact, the recovery attempt has retraced entirely to touch a sell signal at 2796.75. Yesterday afternoon buyers have been rewarded. And soon the bias-up window will begin lapsing. Triggering a sell signal would be credible for reversing the trend back down to at least correct a portion of yesterday's rally. But back above 2801.00 would no longer be premature to resume the rally.

TUE afternoon signal (triggered at 1:20 ET) SPX ES Bias-up: above 2799.00 2803.75 ...would target 2806.50 2811.25 Bias-down: under 2785.75 2790.75 ...would target 2779.25 2784.25 Signal status: NO-BIAS . 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.

Still hovering at the highs. This morning's 2803.00 renewed bias-up target was attacked to within 3 ticks several times, twice to within 1 tick. And now it's being attacked again, this time during the afternoon's bias environment. This afternoon's bias-up signal is 2303.75, and it didn't trigger in time to signal bias-up. So, it should define the window's upper-end if tested. Probing above it during a no-bias environment would require its retracement, potentially down to the 2798.00 1:20 print. A reaction down would have room to the 2790.75 bias-down signal. Nothing requires trending at all for the balance of the session, but the last 60-90 minutes can be vulnerable to reversals.

Monday's excessive optimism had continued its productivity post-close, probing higher overnight to 2799.00. Reacting back down into negative territory at 2785.50 was recovered in time to avoid a bearish opening setup. Its reward was to probe even higher highs attacking 2803.00. But ultimately the opening levels around 2793.00 were retraced. Perhaps anxiousness ahead of the Brexit vote inhibited the extension higher, but then it also limited the reaction down. In any case, Tuesday's ranging has potential to be probed even higher to 2811.25-2812.00, unless Wednesday's open has gapped down back under Monday's 2789.00 high to form an Island Reversal pattern. 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 2799.00 2803.75 ...would target 2806.50 2811.25 Bias-down: under 2785.75 2790.75 ...would target 2779.25 2784.25 Signal status: BIAS-UP, BIAS-UP TARGET EXCEEDED . 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.