Mid-day Update… Bouncing back.

Can’t even keep an overbought market down.

The overnight test of 2825.00 might have been noise testing its resistance, or it might have been on the verge of extending higher. Negative China trade news prevented discovering which, as its reaction ultimately extended down to 2808.50 post-open.

Sellers have not been rewarded for their subsequent effort. First, the morning’s 2813.00 bias-down signal triggered, but wasn’t at all productive. Neither was it invalidated, and its 2806.25 bias-down target is “unfinished business” that requires an eventual test.

Also, the morning’s bounce attacked 2821.00 before noon. Its reaction down only touched this afternoon’s 2814.00 bias-down signal triggering no-bias. Being the afternoon, an offsetting test of the bias-up signal is not required.

So, sellers have inhibited or overcome buyers, while missing opportunities to be productive. Back above 2818.25 would start to signal a bigger bounce underway, probably for more topping process. Meanwhile, a pullback as low as 2801.00 could end the pullback and allow a more durable rally to resume.