Bias-up , up and away

Post-open uptrend remains intact and productive.

As suspected before the open, today”s gap up was very different from yesterday”s. Its intent was not to fulfill a signal before likely reversing down, but to signal that a reversal down was not likely. And the reward at this stage of the pattern — with each prior sell-off never indicating a trend reversal — is to extend to new highs.

This morning”s rally to 2111.00 was consolidated back down to 2108.00 support into the noon hour. The rally resumed, and has extended to fresh highs into the bias environment. The prior relative high is being probed up to 2116.50, within 5 ticks of this afternoon”s bias-up target. 

Both 1-minute and 3-minute RSIs are overbought, which does introduce a vulnerability to reacting down, but also indicates that a reaction down would be only temporary. A reaction down could test 2110.75 without threatening to reverse the trend down, so long as the bias environment isn”t exited at 2:30 under its 2111.50 bias-up signal.

Just exiting the bias environment back under 2114.75 would suggest today”s rally has peaked, but not necessarily that it is being reversed. The 2119.75 prior high should be probed by 1 point before the next correction, probably shallow.