Mid-day Update… Choppy, but droppy.

No windows are being rejected.

This is this week’s fourth reversal of a substantial bounce. And this was the biggest reversal, ending at the lowest level. Yesterday’s rally was a function of all the ballast that had been dumped during the three prior intraday reversals. But as I described during the Market Tour, strong-handed distribution isn’t positioning for a 2-3 day correction. The pullback’s ultimate low could be 2-3 weeks away. And much lower.

The open’s bounce had an opportunity to reject the overnight slide. But the bounce was rejected, aggressively, quickly falling to touch the next lower objective at 2830.75. Its reaction offered an opportunity to reject the post-open slide. But that bounce was also rejected by sharply lower lows. The noon hour entry attacked 2809.00, already retracing yesterday’s pre-open 2813.75 low.

Now having avoided triggering this afternoon’s 2813.00 bias-down signal — which is still being tested — there’s another opportunity to reject the slide. Friday Factors could help to trigger a short-squeeze, but there’s no requirement to bounce at all. And there’s no requirement to resume the decline today, but those Friday Factors: the growing realization of this being a distributive market is greeting two days of impending illiquidity. Refer to the first paragraph.