Mid-day Update… Big refueling rolls over.

Post-open bounce gives decline a lot of leeway.

Gapping down to the morning’s 2593.75 bias-down signal and extending to 2571.00 had apparently gotten ahead of itself. Its reaction had room up to the morning’s 2606.50 bias-up signal while still being likely to resolve down — rewarding sellers for absorbing the post-open bounce — as much as punishing the bounce for not gaining traction .

The bounce got to within 1 point of 2606.50. It was retested at noon, and held. The noon hour trended back down to eventual probe the morning’s low by 1 point of 2569.50.

This afternoon’s 2588.00 bias-down signal has triggered, and its 2580.25 bias-down target is exceeded at 1:20 to renew the bias-down. Its next lower objective is essentially 2555.00, although probably encountering 1-2 support tests along the way down.

Not yet extending down during the bias environment wouldn’t be bullish, unless the window were exited back above its 2580.25 bias-down target. That could produce another oversold corrective bounce ahead of tomorrow’s FOMC meeting. But no bottoming pattern is yet in sight.