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) Sunday night's surge exploited the bullish uptrending already underway into the holiday weekend. Starting from under Thursday's 3121.50 close, the rally extended through the prior range's 3156.00 upper-end to 3167.50 by midnight. Ranging choppily sideways through the balance of the night persisted through Monday's session. Pre-open and post-open tests of 3173.00 both reacted down to the range's lower-end at 3156.00. A late rally recovered the range's upper-end back up to 3174.00 through the close. Overnight action's new info... (nearby chart is last intraday session and Globex) Monday's late rally extended higher with almost no hesitation, probing the 4-week old Island up to 3184.00. That was reversed down even more quickly down to 3158.00 by midnight. The reversal resumed ahead of Europe's opens and attacked 3138.00, now reacting up to 3150.00. If, then... (notes to accompany the Tour recording) The overnight low's attack on 3138.00 is really just part of a 90-minute consolidation around 3141.00. Extending the rally this morning without delay had required gapping up, which initial overnight action seemed to be forming. The alternative was a pullback down to 3141.00, which has now formed instead. If the pullback's intent is as was suspected -- to find stronger-handed buyers below, since they weren't attracted to yesterday's range -- then rally mode is free to resume at any time. But having already neutralized all REQUIRED unfinished business yesterday from the 4-week old Island, we should be aware that not rallying from 3141.00 could otherwise be starting a new downleg. The bigger Complex Ascending Triangle, described during our bigger picture reviews, prefers probing the Island before abruptly ending the rally. And that leg could develop aggressively today. But even the most bullish scenario doesn't preclude a post-open retest of 3141.00, while the bearish scenario would see 3141.00 fail to hold. First Trade... (9:45 preliminary indications for the 10:15 Bias parameters)

Exiting the open under 3153.50 would be likely at least to trigger the 3157.50 bias-down signal. Exiting the open above 3160.25 would be unlikely to trigger bias-down.

Rallying from overnight pullback limit test. The consolidation at overnight lows was clearly supported by the 3141.25 bias-down target. Even more relevant is today's 3141.00 pullback objective if the open were not gapping up. This is the best of both worlds for the rally. The pullback objective was neutralized overnight, and already rallying into the open has extended to avoid triggering this morning's 3157.50 bias-down signal. An offsetting test of the 3177.00 bias-up signal is in-play. It is being attacked up to 3169.50. An offsetting test of the 3090.75 bias-up target is not in-play, because holding a test of the 3141.25 bias-down target was not done post-open. Its test is still likely at some point, but the 3177.00 bias-up signal's resistance and the gap back up to yesterday's close could slow the recovery. A detour has room down to 3160.50 while maintaining upside momentum. Meanwhile, the Opening Thrust setup spent the opening 15 minutes under yesterday's low, also Thursday's high, essentially 3156.50. Its recovery through 10:00 already started indicating that sellers were trapped, adding confidence to being able to avoid bias-down. Maintaining the recovery through 10:30 -- in fact, extending higher -- suggests that sellers might be marginalized for the day.

TUE afternoon signal (triggered at 1:20 ET) SPX ES Bias-up: above 3187.25 3177.00 ...would target 3201.00 3190.75 Bias-down: under 3171.00 3161.00 ...would target 3160.50 3150.50 Signal status: BIAS-DOWN . 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.

But sellers aren't very enthusiastic. This morning's recovery up to 3174.00 began reversing down as the bias environment began lapsing. There were no technical divergences or structural impediments, only the timing window that identifies when sponsorship's attention span becomes vulnerable without reinforcing. No reinforcements arrived. Trending down through the noon hour's exit touched 3156.00 to trigger this afternoon's 3161.00 bias-down signal. An invalidation attempt failed, and the 3150.50 bias-down target is in-play. Sellers aren't enthusiastic about what they've created -- the pre-1:20 low has yet to be probed. So, a counter-trend bounce wouldn't be surprising. Especially since RSIs relentlessly teased at oversold throughout the noon hour's slide, finally becoming oversold, and then diverging positively at the low. Similarly, bouncing out of the bias window wouldn't be surprising. This afternoon's 3150.50 bias-down target would become unfinished business if left outstanding, and could be left outstanding for awhile.

Monday's late rally from 3156.00 session lows-to-highs at 3174.00 had wasted little time extending higher overnight up to 3184.00. All of which was reversed down to 3138.00. Rallying into the open put into play a bias objective at 3177.00 that was attacked to within only 3 points. Reversing down again into the noon hour trended lower through the close down to 3133.00. Tuesday ended five consecutive higher closes, 2 ticks short of a fifth session probing higher intraday highs. Those 2 ticks and the higher overnight high prevented the day's pattern from forming a bearish Pivot Reversal. Extending lower without delay Wednesday anyway will be likely if not gapping up sufficiently. The next lower objective is 3111.00, and any lower starts jeopardizing the potential to probe new recovery highs. Islands are made to be retested, and the month-old pattern's attraction was neutralized Monday. The likelihood for also probing above it is not a requirement, and another bear market is always lurking in the hallways waiting to be called. The only thing inhibiting it from entering may be Tuesday morning's 3177.00 unfinished business above. 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 morning signal (triggered at 10:15 ET) SPX ES Bias-up: above 3158.75 3148.50 ...would target 3170.50 3160.25 Bias-down: under 3128.25 3127.25 ...would target 3125.00 3115.00 Signal status: BIAS-UP, BIAS-UP TARGET MET . 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.