Mid-day Update… Alley oops.

Seemingly weightless rally rediscovers gravity.

Maintaining the open’s gap up had created an anchor that would be likely to attract any reaction down back up. Reacting down was possible, but only as backing-and-filling down to yesterday afternoon’s range.

That wasn’t necessary.

Rallying wasn’t the only alternative to backing-and-filling. But rallying would require a specific characteristic — aggression. Rallying out of the open’s range would have a steep slope, or else it wouldn’t be credible.

The morning’s bias environment had already rallied 8 points through 2638.50 up to 2646.50. Its 5-point pullback triggered a sell signal that was barely productive before entering the noon hour, which resumed the rally. Before the noon hour ended, the rally’s 2657.25 target was being probed by 5 ticks.

Reacting down into and out of the 1:20 bias timing window still managed to renew the bias-up signal above 2651.00. But 2657.25 was the renewed bias-up target, and it was already met. The reaction extended down to within 2 ticks of this afternoon’s 2645.50 bias-up signal — which should define the window’s lower-end if tested.

Probing under 2645.50 during the bias-up environment would be “bias-up downtrending.” It would require being retraced to the bias-up signal, if not also to the 2652.75 1:20 print when bias-up was triggered. The 2645.50 bias-signal is so far holding. A bounce limit is being tested, perhaps to slow-play the clock until breaking under 2645.50 would no longer be subject to recall.

Extending under 2643.75 would start to signal something more substantial underway. It would all but require a complete retracement back down to 2629.00. It could evolve into something much deeper.