Mid-day Update… Energy conservation.

Post-open surge’s reaction is extended on news.

Dipping through the open down to 2580.00-2581.50 was recovered to fresh highs at 2585.50, forming an anchor that would likely attract price back up in case of reversing down. We’ll see. Overbought RSIs at the high encouraged a reaction down that ultimately broke under 2580.00, and extended down to 2575.00 by noon.

More so, the noon hour’s exit broke even lower to 2571.50. Its catalyst appears to have been news of a possible attack in London similar to yesterday afternoon’s New York tragedy. If so, then like yesterday, the selling is artificial and likely to be trapped. The question is when.

The headline’s reaction enabled triggering the 2574.00 bias-down signal. It was recovered by 1 tick at 1:30 to essentially invalidate the signal. That’s much less decisive than I like to see for invalidation purposes. Firming only another point since then hasn’t helped. And that’s despite the London incident being labeled NOT terror-related.

Meanwhile, the 2:00pm ET FOMC policy statement is just ahead. Attracting reinforcements did prove difficult ahead of FOMC and after the overnight rally. The 2585.50 high’s overbought RSIs don’t require its retest, but they can still be retested. And the 2590.50 objective remains intact. A bullish resolution is likely so long as the news is greeted from above 2571.00.