Mid-day Update… Bottomed?

Probe of overnight lows is recovered.

The open’s test of the 2001.50 bias-up signal had put into play an offsetting test of the 1988.00 bias-down signal. The extra detour had created potential for that test also visiting 1985.50. Regardless of how deep, only after probing overnight lows would a rally be credible.

In fact, 1988.00 was tested. Quickly. It was too late to invalidate the bias, and too early for the bias to be lapsing already. And RSIs were oversold. So, a lower low tested 1985.50. The bias environment began lapsing back at 1988.00, with RSIs diverging positively.

A bounce there worked out better, for awhile, reaching 1998.50. But the 1995.50 bias-up signal wasn’t recovered through 1:20, as a reaction down attacked 1991.00.

Now we’re waiting for the 2:00 Beige Book release. It’s not an earth-moving report, but it’s still capable of inhibiting price action until it becomes history.