Mid-day Update… Hostage to headlines.

Upside attraction neutralized, FOMC catalyst awaited.

Holding the open’s test of this morning’s 1979.00 bias-down signal had put into play an offsetting test of the 1990.00 bias-up signal. Surging into and out of noon attacked 1990.00to within 3 ticks, neutralizing its attraction.

It didn’t take long for a reaction down to 1984.50. Partly from having satisfied buyers, and partly from posturing defensively ahead of this afternoon’s FOMC news. A 4-point bounce resolved down, too, this time attacking 1980.00. Perhaps a little more defensiveness with the 30-year auction coming.

Now another bounce is testing 1988.00. FOMC news is at the top of the hour. Having avoided positive territory for this long, a rally could extend more durably. Regardless, there is no requirement to react in either direction.