Mid-day Update… Key support test.

Has the drop gotten ahead of itself?

Even the first break from this morning’s opening 15 minutes of volatility was still within Friday’s range. But its 2647.00 lower-end soon broke, and has extended down. This afternoon’s bias environment is being greeted at 2623.25.

That’s a test of “lower prior highs” at 2625.00 from last Wednesday and Thursday. Having expended so much energy to test a relevant level, holding its test through a relevant level can define a near-term low. Already, a bounce is testing 2632.50. The bias-down environment could also test its 2638.50 bias-down signal without yet suggesting a bigger recovery underway.

Oversold RSIs at the low will require an eventual retest. Probing only slightly lower fresh lows would be tolerated by any pattern trying to form a durable low. There’s otherwise risk that the low’s retest will facilitate a new downleg next targeting 2605.00.