Mid-day Update… Blind-sided.

Politics derails the morning’s recovery.

Testing and holding this morning’s 2421.50 bias-down signal had put into play an offsetting test of the 2428.00 bias-up signal. The upside objective was attacked to within 2 points, and then retested just as headlines triggered a 16-point plunge to 2410.25.

Exiting the bias environment beyond its bias target would have invalidated whatever may have been put into play by holding that bias signal. So, not recovering back above the 2415.50 bias-down target through 11:30-noon would have invalidated the 2428.00 objective, which was put into play by holding 2421.50 through 10:15.

In fact, the noon hour was attacking 2421.00. So, a test of 2428.00 has become “unfinished business above.” It need not be met today — back under 2416.75 would start to signal a retest of the lows underway, as required by its oversold RSIs.

This afternoon’s 2414.75-2422.25 bias signals weren’t touched or triggered. Either should define the no-bias environment if tested. Probing beyond either during the no-bias environment would require being retraced.

If the upside attraction isn’t re-established already when the bias environment begins lapsing, then another dip would be very likely. Just retesting today’s low and filling the gap back to Friday’s Thursday’s 2408.00 close just below it could launch a recovery. Not holding their test would be likely to probe fresh lows down to 2499.00 and 2493.00.