Mid-day Update… Non-ineffectual pessimism.
Overnight rally’s rejection evolves into much more.
The session continues tumbling, proving that last night’s rally to 2688.50 was likely th
e mother of all “ineffectual optimism” as was suspected.
Friday afternoon’s 2660.00 origin of the string of ineffectual optimism and yesterday afternoon’s 2657.00 retest were retraced soon after the noon hour’s entry. The noon hour’s exit was testing 2639.00 and that’s extended down to 2623.25.
2630.50 is under two-week old levels. And like the other dominoes I’ve been describing, there’s no bullish reason to be revisiting this area. This afternoon’s most pertinent question seems to be whether any ineffectual optimism will enable another corrective bounce today.
1-minute RSI is diverging positively. But 3-minute RSI remains weak along with price. Exiting this afternoon’s bias environment in rally mode above a relevant resistance could at least pause the decline. Plenty of earnings are scheduled post-close, but none seem influential enough to inhibit more weakness.