Mid-day Update… Backing-and-filling has its limits.

This morning has followed the entire day’s script.

Whatever’s left today, it seems that I won’t be available to observe and annotate it. Not in its entirety.

The offsetting test of this morning’s 1972.00 bias-down signal was probed at 10:30 while 1-minute RSI diverged positively, launching bounces to 1976.00 and 1977.00.

With the bias environment lapsing, back under 1974.00 was likely to resume the drop to retest the 1964.00 overnight low. And it was attacked to within 2 ticks before firming into the noon hour.

As today was expected to be all about backing-and-filling, we should remember that this action has room down to 1956.00. The overnight low is now being probed down to 1962.50, so backing-and-filling appears to have resumed.

It might seem like trending, being so far removed from yesterday’s highs and close, but it’s still within the context of a correction. The entire room down to 1956.00 need not be utilized. But it does need to hold, preferably intraday — and especially 1960.00 through the close to maintain the rally’s upward momentum and its potential back to last month’s FOMC high.