Mid-day Update… Bull dozing.

Buyers seem to be falling back asleep.

Rallying from the 2709.00 overnight low up to noon’s 2737.75 high barely managed to qualify as fulfilling the bullish WedEX. But WedEX is now moot. Continuing the recovery this afternoon all but required triggering the 2737.50 bias-up signal. But the reaction to touching it at noon has only slid to touch 2725.00.

This being a no-bias environment, the window’s lower-end should be defined by its 2724.00 bias-down signal if tested. It can be probed down to 2721.00-2722.50 and still be likely to recover, at least to retrace the signal. Back above 2735.00 would start to signal that this morning’s recovery intends to extend into late-afternoon.

But we can’t dismiss or discount the relevance of testing and holding 2737.50 at the relevant noon window. And not just because it is this afternoon’s bias-up signal. It is also Thursday night’s “spindle” which had developed wider and wider swings around it. And it was Friday afternoon’s bias environment entry and exit that had barely held.

It is meanwhile resistance. And holding its test this afternoon keeps alive the potential not only for launching a downleg, but also for resuming the decline to fresh lows.