Mid-day Update… Another detour.

Tariff headline derails recovery.

A funny thing happened on the way to an afternoon short-squeeze. The morning’s fresh trend extreme at 2865.00 had been recovered in time to avoid triggering the 2875.25 bias-down signal. And that was after also testing the 2868.75 bias-down target. Offsetting tests of both bias-up parameters were put into play.

But it was still a bias-down environment, so the window needed to be exited back above 2884.50 for confirmation that momentum had reversed up. In fact, 2884.50 was tested as the bias environment began lapsing.

A good effort, and probably on its way to being successful. But it was already retraced down to an inflection point at 2877.00 into the noon hour.Being in proximity to triggering a signal, then rejecting it, is almost tantamount to triggering the opposite signal. At least, the pattern becomes hyper-vulnerable to a reversal, which a tariff headline exploited in a very big way.

Plunging to 2868.00 has ranged sideways back up to 2874.50. This is essentially the afternoon’s 2868.75-2875.00 bias parameters. Bias-down triggered, and its bias-down target is already met. More important, sellers that were almost marginalized are refreshed, while buyers have been trapped ahead of the weekend. Potential down to 2857.00 is only growing.