Mid-day Update… Getting comfortable with the depth.

Look out below if that comfort level is finally reached.

Deep sea divers know the risks of descending too quickly too deeply. The inverse can be true, too. We last saw that on Monday, when the gap up pointed the session higher, but trending didn’t begin until the morning’s choppiness had ended.

Has this morning’s choppiness ended? The noon hour’s exit touched the 2041.00 low where the morning’s bias environment began lapsing. Retracing it proves the noon hour’s bounce was  “ineffectual optimism.” Both lows stopped 1 tick short of touching overnight lows, optimism that is potentially bearish from a contrarian perspective.

If tested, the 2049.75 bias-up signal should define the bias environment’s upper-end. Back above 2045.00 would signal some bounce is underway. But back under 2042.00 would signal a new downleg underway. Before 1:30 a break under 2042.00 would invalidate the afternoon’s no-bias signal. After 1:30 a break under 2042.00 would be no-bias trending requiring a retracement.

Sideways ranging until the bias environment begins lapsing would leave the final hour vulnerable to trending down sharply.