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

Through the prior close... (summary of last Market Wrap) Sunday night's gap up from Friday's 3228.00 close soon tested and then retested 3250.50 through midnight. A pullback held 3233.00 through Europe's opens. Monday's opening hour surged to test 3267.00, and then retraced it down to 3242.50 by noon. Suddenly the open's 39-point rally and its 25-point retracement developed into a 13-14 point range through the 3245.50-3247.00 close. Overnight action's new info... (nearby chart is last intraday session and Globex) The Globex open blipped-down to 3236.00 and immediately began reversing up. And up, apparently in reaction to China injecting massive liquidity. Relentless trending has retraced all of Friday's post-open drop, probing Thursday's 3283.00 cash session close by 2 points. The gap back up to Thursday's 3290.50 futures close remains unfilled. If, then... (notes to accompany the Tour recording) Yesterday afternoon's relatively narrow sideways range reflected the recovery's lack of sponsorship. Strong-handed buyers weren't attracted, perhaps inhibited ahead of GOOG's earnings. More strong-handed buyers could be found with another drop, which would also be likely to probe well under Friday's test of the decline's 3214.00 target. Gapping up would suggest that strong-handed buyers had arrived. But now Tuesday's open must extend higher through the open to prove the relentlessly overnight trending hasn't already fulfilled buying pressure. In fact, resuming yesterday's opening surge would have targeted 3279.50, and it's already being tested overnight. Exiting the bias environment above 3279.50 could start to suggest a bigger bottom might have formed. But trending down through the open would signal the overnight rally was more likely being reversed back down. First Trade... (preliminary indications for the Bias parameters) The open is indicated well above this morning's bias parameters.

Trending through overnight highs. The overnight rally had extended to attack 3290.00. Reacting down pre-open to 3284.00 ranged flat-to-lower during the open. Already beginning to recover when the opening 15 minutes of volatility lapsed then extended to fresh highs attacking 3295.00. One more dip to 3288.00 resolved up, too, now touching 3298.50. Relentless overnight trending wasn't rejected, but took too long to confirm its momentum remains intact. This setup all but requires fresh highs, like now being produced, but remains vulnerable to reversing down later. The post-open pullback has resolved up to test 3297.00. Testing 3301.00 is likely, if not also 3311.00. Back under 3290.00 would signal the trend reversing back down.

TUE afternoon signal (triggered at 1:20 ET) SPX ES Bias-up: above 3312.75 3311.00 ...would target 3305.50 3303.75 Bias-down: under 3298.50 3296.75 ...would target 3292.50 3290.75 Signal status: NO-BIAS, TESTED BIAS-UP SIGNAL . 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.

Gap-and-go forming? The open's gap up and eventual follow-through extended to within 1 tick of its 3301.00 target before the bias window began lapsing. Entering the noon hour at or above the bias window's high suggests that sellers won't regain control. Noon's entry at or above 3301.00 was reacting down from an interim probe up to 3304.50. The noon hour ranged between them, not trending until the noon hour was ending. And that trending was down. The break lower held a test of the 3296.50 bias-down signal, when it had become too late to trigger. Being a no-bias environment, the bias-down signal should define the window's lower-end. Being the window's lower-end with the entire window still ahead, bouncing back to or toward its 3303.75 bias-up signal is likely. Already, the 3296.50 bias-down signal's reaction is testing 3302.00. Testing the 3303.75 bias-up signal during the no-bias environment should also hold its test, like the bias-down signal held its test.

Meanwhile, maintaining or extending the gap up through the morning bias window is the basis for a "gap-and-go" setup. Not trending above the morning's high this afternoon would complete the setup. Regardless of probing any higher or not -- like a temporary visit to 3311.00 -- would be vulnerable to a pullback day tomorrow. We'll revisit the afternoon's price action to confirm whether the setup formed.

China goosed liquidity overnight to prevent Monday afternoon's 3244.00-3255.00 range from reversing down. Globex immediately blipped-down to 3236.00 then reversed up relentlessly overnight, through Friday and Monday's highs to attack 3290.00. Tuesday's open briefly attacked 3282.00 as support, touching Thursday's cash session close as support. The rally resumed relentlessly to touch 3304.50 by noon, and the balance of the afternoon ranged flat-to-lower to 3294.00-3296.00. Even before a last-minute surge back up to 3300.00, Tuesday's last dip was too late and shallow to disqualify the morning's Gap-and-go setup. The usual resolution is a pullback day, before eventually rewarding the morning's sponsorship with higher highs. Otherwise, resuming the rally Wednesday morning requires gapping up above Tuesday's 3304.00-3305.00 highs. A pullback has room down to 3279.50 or 3266.00 while still being likely to recover sooner rather than later. Extending higher first would be likely to test 3311.00, regardless of the test's resolution. 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.

WED morning signal (triggered at 10:15 ET) SPX ES Bias-up: above 3305.50 3303.75 ...would target 3312.75 3311.00 Bias-down: under 3292.25 3290.75 ...would target 3285.50 3284.00 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.