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... (summary of last Market Wrap) Friday's late drop to 2964.00 had eventually extended down Sunday night. Its 2954.00 low held critical support at the midpoint of the 2950.50-2957.50 Thu-Fri gap-to-gap retracement. Absorbing sellers there keeps alive near-term potential for retesting Friday's 2994.00 high. But it only helped Monday to fluctuate choppily and narrowly around Friday's 2968.50 cash session close, between 2964.50-2971.00. Overnight action's new info... (nearby chart is last intraday session and Globex) Globex immediately began firming to probe intraday highs up to 2974.00. An Ascending Triangle was formed by resistance at this morning's 2973.75 bias-up signal, and two rising interim lows. The pattern broke higher one hour before greeting Europe's opens at 2982.00, consolidating around this morning's 2981.00 bias-up target. Perhaps triggered by comments from Fed speaker Bullard in London, a reaction probED back into yesterday's range to 2971.50. If, then... (notes to accompany the Tour recording) Even before its reaction down, the overnight rally doesn't ensure the intraday pattern will extend higher to neutralize "unfinished business" at Friday's 2994.00 high. Rallying at all does help to forestall the vulnerability of retesting the 2950.50-2957.50 gap-to-gap retracement which could extend to fresh pullback lows. An intraday test of 2950.50-2957.50 would become likely if the open were breaking back under yesterday's 2964.50 lows. Otherwise, trending up intraday to whatever degree is likelier. First Trade... (preliminary indications for the Bias parameters) Exiting the open at 9:45 under 2970.25 would be unlikely to trigger the 2973.75 bias-up signal. Exiting the open above 2977.00 would be likely to trigger bias-up.

And well rewarded. Sunday night's dip held its test of the Thu-Fri gap-to-gap retracement at 2950.50-2957.50, keeping alive the next likely objective -- to retest Friday's 2993.00 and 2994.00 highs.

Yesterday's narrow ranging didn't change that, and now it is done. And then some, now attacking 2998.00.

Post-open action has trended up almost relentlessly. This is despite last night's rally probing above the 2981.00 bias-up target and being retraced to probe back under its 2973.75 bias-up signal. The bias-up target was recovered through 10:15 to renew the bias-up signal, and resistance at its 2987.50 renewed bias-up target was exceeded through 10:30. Simultaneously 1-minute and 3-minute overbought RSIs at Friday's high had required its retest, and now RSIs are overbought again. The rally can continue, but its recovery would be required in case price were to reverse down suddenly from here. The next higher calculable resistance is 2999.00-3000.50. Room for noise down to 2993.50 could be probed down to 2988.00 before signaling the morning's rally had fully discounted optimism, and must correct deeper to refuel.

TUE afternoon signal (triggered at 1:20 ET) SPX ES Bias-up: above 3000.00 2999.75 ...would target 3007.75 3007.50 Bias-down: under 2992.00 2991.50 ...would target 2884.75 2884.25 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.

Fully discounted optimism? We last saw this pattern Friday. Gapping up and trending higher throughout the morning often fully discounts near-term optimism. The setup is vulnerable to temporary backing-and-filling, perhaps something deeper although not usually.

Friday morning's high stood for the session. Its deep reaction down was unusual, but not abnormal for the headline-rich environment. And anyway the dip was recovered almost entirely.

Now today's 11-point gap up to 2977.00 has extended sharply higher throughout the morning bias environment up to 3002.00. And price action since then has hovered narrowly at the highs.

Probes of fresh highs are possible, but probably only as a wider range around the morning's high -- even if extended to the afternoon 3007.50 bias-up target. Deeper backing-and-filling like Friday is never likely, and is less likely when the previous similar setup already made the exception. More so, the interim detour from Friday's highs was relatively brief and shallow. Now hovering at higher highs reflects increased optimism. A deeper dip to this afternoon's 2991.50 bias-down signal is possible, perhaps also to 2988.00. But the near-term likelihood would be to recover, if not also to resume the rally.

Gapping up and rallying throughout the morning very often discounts all available near-term optimism. Hovering at the highs through the close like Tuesday is the setup's typical resolution. More so when the morning's rally has fulfilled its objective. That was 2999.00-3000.50, which was probed up to 3002.00. Sideways ranging through the afternoon briefly probed that up to 3003.25. But the session ended attacking the range's 2994.50 lower-end. The setup often also tends to persist through the following morning. But if Wednesday morning has only continued hovering at or around 3000.00, then its likely eventual resolution would be down. Already trending up overnight is often reliable for maintaining the trend, whether Wednesday morning were to extend immediately or first absorb a dip back down toward Tuesday's "lower prior highs." Backing-and-filling overnight under Tuesday afternoon's lows is often recovered, too. But only to an extent, and opening too deeply or trending down further through Wednesday's open could set a negative tone for the day. 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 3000.75 3000.50 ...would target 3008.00 3007.75 Bias-down: under 2991.75 2991.50 ...would target 2984.50 2984.25 Signal status: BIAS-DOWN INVALIDATED . 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.