Mid-day Update… Detour done?

Yellen reaction has largely retraced.

The open’s surge had consolidated to form an Ascending Triangle. Room for noise above it up to 2109.00 was touched twice before the noon hour. That firmed a Double Top from the Triangle’s breakout.

And that’s often bearish. The pattern normally resolves by trending back down in multiple legs that take 1-2 timing windows to complete. The decline tends to be recovered.

In fact, reacting down ahead of Yellen’s comments suddenly extended sharply in reaction to her slightly hawkish comments. A 4-1/2 point bounce attacked 2108.00 where another downleg was triggered targeting 2101.50 — and soon fulfilled down to 2099.50.

The downleg has been largely retraced almost as quickly as it had developed. That might be a little too optimistic, barely being 1-2 timing windows past the failed Ascending Triangle. Regardless, back above 2108.00 at any time would resume this morning’s rally, which is still targeting 2110.75. Meanwhile, a little more backing-and-filling can define the afternoon bias environment.