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) Friday's collapse had led to Sunday night's 25-point gap down, which eventually extended another 34 points overnight to 3235.50. Monday's opening blip-down to 3233.00 snapped back up and extended to 3253.50, the morning's high. Reversal attempts all failed at 3239.50 before rallying through the noon hour up to 3257.50 Afternoon reversal attempts never gained traction for the effort, but eventually broke through the morning's low to within 3 ticks of the opening print at 3237.50. Overnight action's new info... (nearby chart is last intraday session and Globex) The last 11 points of Monday afternoon's drop had developed when no traction would be gained for its effort. It became a stretched rubber band that the Globex open easily snapped back up 16 points to retest Monday morning's 3253.50 high. The recovery resumed into midnight and eventually attacked 3264.00. Sliding through Europe's opens retraced most of the recovery back down to 3241.75. But only briefly before bouncing, and bouncing sharply, already testing 3259.00. If, then... (notes to accompany the Tour recording) Overnight rally potential up to 3267.25 represented the 61.8{faed0d6dca04cec8b6b7985efddb9b0651107a3aebb05f69f0166038b8c951f6} gap-to-gap retracement of Monday's opening gap. Its 3263.75 peak is the 38.2{faed0d6dca04cec8b6b7985efddb9b0651107a3aebb05f69f0166038b8c951f6} retracement. Either way, now having reacted to the gap's resistance, its retest would be likely to extend higher. Of course, the subsequent reaction down makes the gap's retest less likely soon. At least more difficult, but not impossible, and very rewarding. Having trended down into yesterday's close, gapping above yesterday's 3257.25 afternoon bias window high could form a "session-long rally" setup. Just recovering 3250.50 would be credible for launching another corrective bounce like yesterday. Testing 3257.25 at the open but not maintaining its recovery would instead be as bearish as the setup would have been bullish if fully formed. Snapping back up from yesterday's late rubber band stretch would have been very useful to an intraday recovery, but that snap might now be depleted for having used it for the 24-point overnight rally -- and also by this more recent 17-point pop. Initially stretching even deeper this morning would have been more easily rejected, like yesterday's opening recovery but more durable. Now the burden of proof would be on the recovery if yesterday's lows are probed, otherwise targeting 3227.00-3228.00, and then potentially 3214.00. First Trade... (preliminary indications for the Bias parameters) Exiting the open at 9:45 above 3250.50 would be likely also to trigger the 3245.00 bias-up signal at 10:15. Exiting the open above 3255.00 would be likely also to exceed the 3252.25 bias-up target at 10:15 to renew the bias-up signal. Exiting the open under 3243.00 would be unlikely to trigger bias-up.

Despite rejecting session-long rally setup. Opening at yesterday afternoon's 3257.25 bias window high chopped around momentarily up to 3261.25. But the opening 15 minutes of volatility had become more about dipping back down to 3251.75. The session-long rally setup failed. And it failed after testing its trigger post-open, so its consequence could be as bearish as the setup would have been bullish. But it hasn't been. The 3252.25 bias-up target's support did not break. Its test became likely to launch at least a detour, and maybe only a detour, testing post-open and pre-open highs between 3261.50-3263.00. Which was quickly met. And reacting down from the detour's target held its pullback limit to maintain the recovery. Extending through the overnight high met the 3267.25-3272.50 61.8{faed0d6dca04cec8b6b7985efddb9b0651107a3aebb05f69f0166038b8c951f6} gap-to-gap retracement from Friday's close. And that has already extended higher to attack 3277.00. Exiting the bias window at 11:30-noon back under 3267.25 would start to signal the corrective bounce had peaked and the decline would likely resume. If 3267.25 isn't rejected, then the corrective bounce's next opportunity to peak will likely come from filling the gap back Friday's 3294.00 close. Not necessarily today, and not necessarily without backing-and-filling -- which isn't unusual ahead of AAPL's earnings. The session-long rally setup is not reinstated, regardless of (so far) squashing its bearish consequence.

TUE afternoon signal (triggered at 1:20 ET) SPX ES Bias-up: above 3280.75 3280.00 ...would target 3288.25 3287.50 Bias-down: under 3271.25 3270.50 ...would target 3264.75 3264.00 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.

Consolidation time? The failed session-long rally setup didn't prevent extending higher anyway. The 3267.25-3272.50 gap-to-gap retracement wasn't being rejected at the bias window's exit. Rather, fresh highs into the noon hour got up to 3281.25. A bigger recovery is entrenched. But even if extending higher were 100{faed0d6dca04cec8b6b7985efddb9b0651107a3aebb05f69f0166038b8c951f6} assured, nothing requires extending higher today. Or precludes an interim reaction down. This afternoon's 3280.00 bias-up signal held its test to trigger no-bias. It should define the bias window's upper-end. A reaction down has room to test the 3270.50 bias-down signal. A reaction down did get to 3272.75. Probing or breaking back under the 3270.50 bias-down signal isn't likely until the bias window begins lapsing.Back above 3278.75 could start to resume the rally, albeit limited or inhibited during the no-bias window. Ranging tends to contain the afternoons prior to high-profile Tech sector earnings. That wouldn't be surprising with AAPL announcing after the close. Backing-and-filling would be likelier, but fresh session highs would still get a benefit of the doubt for resuming the rally.

Having trended down into Monday's close, gapping up Tuesday above Monday afternoon's 3257.25 high could have signaled a session-long rally. The setup is triggered by maintaining and preferably also extending the gap up through the open, but Tuesday did not. The gap up was recovered through the first half-hour, which was sufficient to expect at least a detour higher, but not to reinstate the session-long rally signal. Nevertheless, the every timing window probed its prior timing window's high, as session long rallies do. Meanwhile, the morning bias window recovered the 3267.25-3272.50 61.8{faed0d6dca04cec8b6b7985efddb9b0651107a3aebb05f69f0166038b8c951f6} gap-to-gap retracement between Friday's close and Monday's open to signal the gap back to Friday's 3294.00 close is now targeted. Still being only a corrective bounce, it is vulnerable to reversing down prematurely, whether only to retest Monday's 3233.00 low or to resume the decline. Tuesday afternoon's fresh highs were retraced back under the noon hour highs. Consolidation and ranging is normal before high-profile post-close earnings, especially from Tech sector companies like AAPL. Greeting its earning from a position of weakness didn't prevent an initially favorable knee-jerk reaction, popping up $10 to attack 328, almost $5 above last week's high. 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 3283.50 3282.75 ...would target 3290.25 3289.50 Bias-down: under 3273.00 3272.25 ...would target 3265.75 3265.00 Signal status: NO-BIAS, TESTED BIAS-DOWN SIGNAL AND BOTH BIAS-UP PARAMETERS . 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.