Mid-day Update

REMINDER: I WILL LIKELY BE AWAY FROM THE SCREENS LATER THIS AFTERNOON.

So, excessive optimism got another clobbering on its stiff upper-lip.

The next higher objective at 2187.00 was attacked to within 1 tick, by errant ticks, while RSIs became overbought simultaneously — in reaction to news. That can undermine the requirement to be retested, but it’s moot at the moment.

Another set of headlines triggered a reaction down to and through the morning’s 2170.25 low to 2160.75. Oversold RSIs during the noon hour can undermine its retest requirement, too. After drifting up to attack 2168.00, another dip only attacked this afternoon’s 2162.00 bias-down signal.

Tenuous conditions triggered this morning’s rally, and that had kept us vigilant for the potential of collapsing to new lows. The specifics may have changed, but the conditions remain tenuous. Recovering back above yesterday’s ~2168.00 lows wouldn’t necessarily reflect accumulation, but still drift back up into the close.

There’s otherwise no bullish reason to revisit the noon hour’s low. Neutralizing Its oversold RSIs would only risk focusing new sellers on the Friday Factors’ illiquidity.

SPECIAL NOTE: I will be away from the screens on the afternoons of both Thursday and Friday, this week and next, Thank you for allowing me to be of personal assistance in a family matter.

The 2177.00 minimum objective to the first upleg was met at the morning bias environment’s high. Its reaction down to 2172.50 is bouncing, now attacking 2176.00. This morning’s 2178.75 objective remains outstanding, but a fresh low under 2172.50 would be difficult to recover.

Assuming no fresh low, then the balance of the session can extend up to 2178.75.  Closing back under 2177.00 would help to confirm the trend has reversed down. Closing any higher could bounce further, but not necessarily to a new high.

REMINDER: I will be away from the screens on the afternoons of both Thursday and Friday, this week and next, Thank you for allowing me to be of personal assistance in a family matter.

This morning’s 2177.00 bias-down target became “unfinished business below” that will require being tested intraday. Not necessarily today. Reacting up 5 points from 2178.25 through the noon hour has dipped back down to 2180.50.

This being a no-bias environment, its 2177.00-2185.75 bias signals should try to contain trending if tested. Meanwhile, either signal can be tested, which would be triggered back under 2180.50 or back above 2182.25.

Trending after the bias environment lapses should either reject this morning’s drop, or else extend it. Bouncing into the close wouldn’t necessarily prevent another drop tomorrow. But dropping into the close would be likely to extend.

SPECIAL NOTE: I will be away from the screens on the afternoons of both Thursday and Friday, this week and next, Thank you for allowing me to be of personal assistance in a family matter.

Despite the open having neutralized all “unfinished business above” up to 2181.50, the balance of the morning barely reacted down to 2187.50. Slow and steady drifting through the noon hour extended  to attack this morning’s 2185.00 bias-down signal as support.

Probing fresh highs could be done without turning aggressive, and simply drifting slowly and steadily back up. The next higher attractions at 2195.50 and 2202.50 would be in-play above 2190.25.

Meanwhile, support down to 2184.00-2185.00 isn’t so much an inflection point, as it is a likely spot for selling to accelerate. A credible drop will need to be aggressive if it is valid.

Recovery’s surprise retracement ends surprisingly, too.

What spikes up, must spike down?

The morning’s bias environment trended up, in-line with the bullish WedEX influence. Holding a test of its 2176.00 bias-down signal put into play an offsetting test of its 2185.00 bias-up signal. It became “unfinished business above” that requires being tested.

That didn’t prevent a steep downdraft. The gap back up to Friday’s cash session close produced obligatory resistance. Its likely pullback to 2180.50 was touched as the bias environment came within view of lapsing. Suddenly, priced collapsed back down to 2175.00.

Overbought RSIs require a retest of 2175.00. Meanwhile, back above 2177.75 first would require probing a fresh session high. Not too surprisingly, the upside developed first, touching 2183.50. Surprisingly, it developed by surging more steeply than price had collapsed on the way down.

Don’t blink, you’ll miss it. A reaction down is attacking 2179.00, and any deeper would start to signal new session lows in-play. Avoiding that would maintain recovery potential to fresh highs — if not also back up to last Monday’s highs.