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) The pattern at Thursday's close wasn't likely to resolve Friday in either direction. That was further suggested by the overnight swung from probing negative territory at 2755.00 back into positive territory 2812.00. Two no-bias signals also suggested strong-handed sponsorship was lacking. The morning's 2777.00 objective was attacked to within 5 points and became "unfinished business." The afternoon's no-bias trending left unfinished business at 2801.50, too. Meanwhile, Thursday's high was attacked to within 2 points at 2835.00 before dropping into its 2828.00 close, forming an inside day. Overnight action's new info... (nearby chart is last intraday session and Globex) Globex has extended Friday afternoon's rally to attack prior highs. The open's 18-19 spike up to attack 2847.00 had spiked back down and extended lower to test 2813.00. Briefly consolidating, and then reversing back up through midnight, extended to 2865.00. Retracing to 2842.00-2843.00 was lifted by Europe's opens, but so far only to attack the high to within 2 points at 2863.00. If, then... (notes to accompany the Tour recording) History rhymes. Ending last week at or just above the bear rally's likely 2825.00-2827.00 target was ironic. And now it is repetitive, retesting last Friday's highs. The actual intraday high had attacked 2866.00, surrounded by post-close and overnight highs from 2873.00 to 2885.00, none of which requires a retest. By the same token, reacting down from their resistance could still recover and extend higher if the reaction were isolated to a timing window. The first benefit of the doubt goes to the prevailing trend, which is up. So, trending up out of the weekend or absorbing the gap up's reaction down are likelier. But rallying remains vulnerable to being rejected. Otherwise, closing any higher could put into play higher highs like 2930.00-2934.00. First Trade... (9:45 preliminary indications for the 10:15 Bias parameters)

Exiting the open under 2833.00 would be unlikely to trigger the 2840.00 bias-up signal. Exiting the open above 2843.00 would be likely to trigger bias-up. Exiting the open above 2866.00 would be likely also to exceed the 2860.75 bias-up target to renew the bias-up signal.

And only bias-up, so far. Any post-open dip was likely to be only temporary. And it was likely to hold 2842.25-2843.75. Even dipping deeper was still likely to recover from testing the 2840.00 bias-up signal, anywhere in the 2836.00-2841.00 gap-to-gap retracement. The open's dip eventually touched 2843.75, while 1-minute RSI diverged positively, as the first 15 minutes of volatility lapsed. Reacting up triggered bias-up, and already met its 2860.75 bias-up target at the bounce's high. Now being in the orbit of last Friday's 2864.50 high close, probing any higher would target its gap-fill. And probably probe above it to 2870.50. Meanwhile, the 2860.75 bias-up target has been holding. Perhaps that's due to the shallower pullback only touching the upper-end of 2842.25-2843.75. But I'll still anticipate higher highs so long as 2850.50 holds as support.

MON afternoon signal (triggered at 1:20 ET) SPX ES Bias-up: above 2874.00 2875.50 ...would target 2899.25 2890.75 Bias-down: under 2865.25 2857.00 ...would target 2855.50 2847.25 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.

Hovering at prior highs. Rallying through Monday morning through last Friday's ~2866.00 intraday high isn't bearish. It's rallying, it's through the morning, and it's new highs. It's not necessarily bullish, either, not until closing higher. Turning this morning's action bearish still requires actually trending back down under some relevant level. First, stop trending up: The noon hour only momentarily probed a fresh high attacking 2872.00. And now no-bias has triggered while entering the bias environment under the noon hour range. Next, reverse down: The bias environment reaction down attacked 2859.00. But this only establishes a landmark. Finally, the bearish template requires extending down under the landmark of the bias environment low. Fresh afternoon lows when the bias environment has begun lapsing would be credible for extending down sharply. Meanwhile, that vulnerability is still secondary to the the morning's rally extending to fresh session highs.

Friday afternoon's weak-handed rally up to 2835.00 extended higher Sunday night with little difficulty. Its only reaction down was early, shallow, and brief. And it resolved higher through midnight to attack prior intraday highs to within 1 point at 2865.00. Any post-open dip was likely to be shallow, and likely to resume the rally. Touching the shallowest pullback potential at 2843.75 reacted up through the position-squaring window's 2881.25 high. A late reversal down still ended at 2869.00 a new high close. None of the prior highs had required a retest, including the gap back up to last Friday's 2864.50 close. Not the prior night's 2885.00 high or that night's 2775.50 high. Only the highest remains untested. Already extending higher overnight would face only one obstacle to testing the 2930.00-2934.00 bear market rally's next target. That obstacle is more about timing than about price. Isolating a probe of fresh highs would still be vulnerable to reversing down. Otherwise, retesting 2885.00 could be avoided by already reversing down under 2856.50 through Tuesday's open, then confirming under 2835.00. Friday's "unfinished business" at 2801.50 and 2777.00 would be likely attractions. 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.

TUE morning signal (triggered at 10:15 ET) SPX ES Bias-up: above 2888.50 2878.00 ...would target 2899.50 2891.00 Bias-down: under 2870.50 2862.00 ...would target 2854.25 2845.75 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.