Mid-day Update

Mid-morning slide recovers.

This morning’s reaction down from 1898.00 came after the bias timing window’s 10:15 signal. The timing suggested that its sponsorship was weak-handed, and therefore unlikely to reverse the trend down.

The reaction was a little deeper than I had anticipated, attacking 1883.00. But its potential back up to 1998.00 is now fulfilled. Bias-up was triggered along the way. Its target is fulfilled, too.

There’s no requirement to trend any higher, especially so long as 1898.00 is holding its retest. That could be a probe above this morning’s 1900.25 high that exits the bias environment back under 1898.00.

Neither is there any requirement to trend back down. Exiting the bias environment back under 1895.50 would at least suggest the bias environment had fulfilled buyers.

Not attracting buyers.

The noon hour began hopefully, trending up from 1863.00 to fresh session highs. Attacking the afternoon’s 1883.50 bias-up target to within 1 tick was quickly reversed to range widely around the afternoon’s 1877.25 bias-up signal.

Bias-up did not trigger. So, the no-bias environment was likely to be contained between its bias signals. In fact, the balance of the bias environment drifted down to its 1863.00 bias-down signal.

Fresh lows extended already to attack 1852.00.  At least 1-minute RSI diverged positively there, and its reaction is attacking 1864.00. Extending above 1867.50 would be credible for revisiting at least today’s high. Back under 1858.00 would simply resume the decline.

Not rejecting the dip back into Friday’s range.

This morning’s open shouldn’t have probed back under Friday’s 1981.00 high to be confident in the pullback holding. At least the probe was brief, and reacted up sharply to prove the level’s relevance.

In fact, the reaction up was 17 points, further proving the relevance of holding Friday’s range as support. But the reaction was only temporary. Deeper and deeper dips have been chipping away at its support.

This afternoon’s bias-down triggered under 1880.25. Its 1874.75 bias-down target held as support through 1:20 to avoid renewing the signal. Still, it’s a bias-down environment whose next lower objective is 1865.00-1868.00.

Exiting the bias environment at 2:30 back above 1881.00 would rob sellers of their traction. But momentum reversing up won’t be signaled under 1885.00.

Late bias-down and bearish WedEX are fighting against timid buyers.

I call them timid buyers because they keep trying, and then stop short of anything impressive. Maybe there’s a reason for that.

There’s timid sellers, too. Entering the noon hour above the morning’s low before probing lower, and then recovering the morning’s low before the noon hour’s end, is a bullish setup. It was borderline today.

But sellers can be timid and still win the day. Bias-down just triggered late, and some remnant of the bearish WedEX may still be influential.

Be careful being short without breaking down under 1853.00-1855.50. Above 1868.00 could start to be squeezed higher.

REMINDER : I’M AWAY FROM THE SCREEN FOR AT LEAST AN HOUR STARTING NOW.

Afternoon digestion.

The post-open rally to 1940.00 has reversed down considerably. Not only in terms of size for dropping 31 points down to 1909.00, but also in relative terms for dipping well back into yesterday’s range.

Neither of those measurements disqualifies the drop from being only a temporary correction.

Room down to 1912.00 has held through every relevant timing window. Its support was tested as long as possible, and then longer, triggering noN-bias for this afternoon’s bias environment.

This morning’s noN-bias environment wasn’t likely to sit still since it was triggered from so far above. This afternoon’s noN-bias environment should be more subdued — still choppy, but ranging around 1912.00 instead of trending away from it.

When the bias environment is within view of lapsing, trending either way would be credible for extending in that direction.