Mid-day Update… Bad bounce, bad.

Noon hour reverses gap up and extension.

The morning’s rally was well-signaled. Pre-open pessimism down to 2138.25 was countered by restrained optimism testing 2141.50, then a post-open surge sliced through prior highs up to 2146.75.

RSIs got overbought, and price reacted down. Although it had room down to 2141.25 without yet reversing momentum down, it could have been shallower. It wasn’t, and 2141.25 was soon tested as support. Bouncing to 2143.75 almost resumed the morning’s rally. But the noon hour’s entry soon plunged to test 2135.00. And that has extended down to 2132.75.

Once again, 2134.00 has tried recovering. And once again, a recovery above 2134.00 is at risk of failing.

Back above the 2136.00 bias-down signal would not require extending any higher, but it would establish a lower-end for the next hour that is still likely to bounce, perhaps to retest the high’s overbought RSIs. The grace period was just invoked, and could still trigger bias-down.