Mid-day Update… Down may be done, but up is still out.

Pullback target met.

The morning bias environment’s range was resisted by its 2103.00 bias-up signal. Holding its test through 10:15 had put into play an offsetting test of the 2095.50 bias-down signal. The actual break lower was slow arrive, but very quick to fulfill its objective.

The likelihood for probing even lower was fulfilled during the noon hour’s test of 2091.50. Except for 2090.00, the pullback we discussed before yesterday’s close wasn’t likely to probe much deeper.

That doesn’t equate to being a buy signal. Lower lows could yet be probed in the context of a temporary pullback — even 2088.00, so long as the close had recovered.

Bouncing is possible, too. In fact, the reaction to Yellen’s noon hour speech remarks just reacted up 5 points. But resuming the rally today is not required. The corrective influence may persist into the final hour, and any earlier bounce would be suspicious.