Pre-close View

Narrow afternoon ranging. Like yesterday.

If similar setups that appear sequentially should resolve differently, then today’s pattern is in for a surprise. Gapping up, recovering a gap down, and afternoon no-bias signals — both yesterday and today — ranged sideways through the afternoon bias environment.

Yesterday resolved down, relatively little. Today should either resolve down a lot, or else resume the rally.

Extending the range into the close is possible. But it’s unlikely since no traction was gained at the bias environment exit or the final hour’s entry.

Regardless, closing above 2143.00 would put into play higher objectives, which we’ll discuss in detail during the post-market Wrap. Closing under 2143.00 would have implications, too, depending on how substantial the margin.

Not trending, but also not reversing.

The bias environment began lapsing within the noon hour’s range. The final hour was entered within the bias environment’s range. No traction is being gained by the sponsorship of today’s rally.

Extending higher isn’t impossible, but must be signaled above 2135.25-2136.25. Breaking higher would target 2141.00-2143.00.

Otherwise, the balance of the session will more likely range flat-to-lower. Extending the pullback still has room down to 2129.00-2130.00, which doesn’t require being tested.

Never underestimate Friday trending.

A bullish Brexit reaction would have targeted 2125.25. Retesting the pre-Brexit high has targeted 2125.25. The interim reaction down never affected the patterns which produced that calculable objective.

2125.25 was just met. Its test neutralized overbought RSIs at the prior high — now 1-minute RSI is diverging negatively. And the test is reacting down.

2125.25 was met on a very extended buy signal. It was triggered above 2111.75 when the morning bias environment was entered near the apex of a Symmetrical Triangle.

The bias environment exit was above all prior highs, which is nearly impossible to reverse down on Fridays. Back under 2122.50 might fit in a dip to 2119.00 or 2117.25. But this is the week’s most difficult time to attract counter-trend sponsorship — a dip is only viable because of all the buying pressure satisfied at 2125.25.

Closing bounce trying to duplicate open’s surge.

Whether originating from the open or from the open’s surge, a pullback had room down to 2082.00 before even threatening the uptrend. Now the open’s surge to 2102.00 has reversed down to 2082.00.

RSIs diverged positively into the test, which didn’t resolve up quickly. Fresh lows had been probed after the bias environment began lapsing at 2:30, but they weren’t rejected by fresh highs going into the final hour. And now an inflection point is being tested at 2086.75 but not yet exceeded.

Back under 2084.00 would trigger another downleg. Otherwise, there remains potential for extending higher into the close, but not necessarily aggressively, not necessarily substantially, and not necessarily.

Ready to fulfill the consequences of last week’s rally?

Closing last week above 2089.75 had created the requirement for eventually probing above the pre-Brexit high — probably up to 2125.25.

That didn’t prevent an interim pullback. Entrenching the upside probably enabled the long overdue pullback. Attacking 2105.00 Sunday night and testing 2066.00 this morning is a meaningful pullback.

Now 2092.00 is being attacked, a big shift from the two-day pullback.

The afternoon bias environment exit was still within the noon hour’s range, but the final hour’s entry was above both. Extending to fresh highs through the 3:10-3:20 window could extend sharply higher through the close.

Friday afternoon’s 2091.00 low has been probed already by 1 point. The session’s “higher prior lows” are 2093.25, and the gap back to its close is essentially 2096.75. Those are attractions — potentially also repellents, so their recovery would be critical to extending the rally Thursday.

Otherwise, back under 2085.50 would at least delay extending higher today, perhaps even dip deeper to 2080.50.