Mid-day Update… Late detonation.

Explosion higher confirms oversold, but doesn’t ensure extension.

Coiling through yesterday’s close had required the rally to almost literally explode higher at today’s open. Gapping up does not fulfill the characterization. So, the post-open touch of 2698.00 was reversed to attack 2684.00.

Bouncing 10-11 points into the bias environment lapsing suddenly exploded higher. A surge to 2719.00 has eked higher through the noon hour to attack 2728.00.

The catalyst was lifting the embargo on the Fed Chair’s noon prepared remarks. It was no longer the open, so the explosion doesn’t qualify for confirming the rally remains intact.

We can still give the rally a benefit of the doubt — the open had formed a position of strength that was likely to absorb the morning’s backing-and-filling, and the explosion seems to have lodged itself above the resistance of last Tuesday’s “higher prior lows.”

Meanwhile, a pullback would be attracted down to this afternoon’s 2696.00/2702.25 bias-up parameters, if not also to this morning’s 2688.00 bias-up signal that was probed during a no-bias environment.