Mid-day Update… Bottom, or bounce?

Buyers leveraging the trapped shorts.

This morning’s bias-down signal triggered despite having been recovered from testing its bias-down target. So, the bias-down target’s retest was put into play, producing fresh lows down to 2671.25. And producing the opportunity for a second consecutive close under prior lows that would put into play the next lower objective.

That disappeared in a hurry. The bias environment lapsed just above its 2691.25 bias-down signal, isolating the interim probe under prior lows. Either it was another temporary corrective bounce, or else sellers were done.

It does seem that they were done.

Extending higher into the noon hour peaked at 2710.00 before dipping back down to 2691.50 (1 tick short of the morning’s bias-down signal). The afternoon’s 2695.50 bias-down signal’s test was recovered in time not only to avoid triggering it, but also in time to test the 2711.00 bias-up signal. Which triggered.

Its 2718.00 bias-up target is being exceeded up to what would have been the 2729.00 renewed bias-up target at 2729.00. This is the sort of pattern — failed attempt to confirm the downtrend — that can be rewarded by a relentless intraday rally. The 2760.00 area isn’t necessarily in-play, but its test wouldn’t be surprising so long as another drop doesn’t break back under 2711.00.