Mid-day Update… News-driven?

Good news triggers morning rally.

This morning’s 2537.00 bias-up signal triggered while its 2541.50 bias-up target was being attacked, and attacked, and attacked. A slightly higher high actually tested the target. Narrow ranging continued overlapping it until the bias environment began lapsing.

And then the rally extended. The suddenly steep slope suggests that’s where the rally actually began. Like yesterday, the bias environment lapsing trended straight up into the noon hour’s 2549.25 high. Unlike yesterday, there was actual news associated (House passes budget, inches closer to tax reform, surprising the recent gloomy opinion spin).

The balance of the noon hour and now this much of the afternoon bias environment have hovered at or under the 2549.25 high. Meanwhile, this afternoon’s 2547.00 bias-up signal has triggered.

Having expended so much buying pressure so quickly, the balance of the afternoon is vulnerable to backing-and-filling. Having created so much extra upside, pullbacks have room down to 2543.00 before threatening the chart pattern. But probing a fresh high — especially fulfilling this afternoon’s 2452.00 bias-up target — could trigger a pullback if not already done.