Friday”s expiration session trended down

Friday”s expiration session trended down throughout. Yet, it was an “inside day,” contained entirely with Thursday”s range. And since Thursday trended up, Friday”s downward bias tends to be contratrend. The setup resembles Wednesday”s noon hour sell-off ahead FOMC”s statement, which reacted up sharply.

Another similarity to Wednesday is their lows. The pre-FOMC drop had touched support at the afternoon”s bias-down signal, literally expending as much selling pressure as was possible without gaining traction for the effort. Friday afternoon”s drop had potential to 2097.50, and that was its last minute low. In fact, post-close action has bounced back to 2100.

Nothing is perfectly identical, and there is one big difference between the two setups. Wednesday”s low was mid-day and mid-week. Bottom-fishers can be attracted if they have plenty of time to manage a bad entry. Friday”s low was at the very end of it all — not rallying (gapping up!) sharply on Monday would be vulnerable to doubling Friday”s drop.

Meanwhile, there is a question whether the late bullish WedEX failed, or inverted. The expiration open”s downtrend had initially undermined the setup, although the door remained open to reinstating it. If WedEX was actually inverted to be bearish, and Friday performed appropriately, then Monday morning would be likely to trend down, too. Whether from opening flat, higher or lower, post-open action is vulnerable to trending back down through the morning.

There”s no Saturday Review this weekend, but here”s Friday”s post-market Review:
https://roddavid10.mitel-nhwc.com/join/fbkzkrs