Mid-day Update… Borderline distribution.

Overnight highs yet to be retested.

The open’s surge that fulfilled the 2891.75 bias-up target wasn’t retraced deeply enough to reject bias-up altogether. The 2793.50 bias-up signal cleanly. So, still being a bias-up environment, dipping down to 2789.00 was still likely to be recovered. In fact, probing negative territory held 2784.00 and bounced back up to 2793.50.

Retracing up to the 2793.50 bias-up signal was required for having probed under it during a bias-up environment. Often the 10:15 print is also retraced, which this morning is 2797.25. But that doesn’t require a retest. In fact, there is no “unfinished business above.”

But a recovery is still likelier, considering the late origin of this morning’s drop, and now having exited the noon hour in positive territory. Otherwise, another downleg exiting the bias environment would start to signal a deeper pullback underway. And having reversed last night’s fresh highs into positive territory this morning, a deeper pullback could still resume the distributive template.