Mid-day Update… Nothing bullish.

FB, SLD, B-D, and more.

False Break.
Tuesday’s breakout from the Ascending Triangle above 2778.00 was likely to be a false break. It likelier objective at 2819.50-2823.00 held multiple retests through yesterday. An interim dip yesterday morning had stopped optimistically short of touching the Triangle’s upper-end. But now today’s 60-point drop is probing back into the Triangle down to 2756.50.

Session-long decline.
Price action into yesterday’s close had bounced, and the afternoon’s low had printed during the bias environment. So, gapping down to and/or through that prior low formed a “session-long decline.” The setup essentially says that all but one timing window will probe its prior timing window’s low. That exception is usually the noon hour, as it is today. The final hour should still probe under the afternoon bias environment’s low.

Bias-down.
The least influential, since its 2760.75 bias-down target is already met. And it’s being probed, which doesn’t contradict this being a bias-down environment. Having said that, exiting the bias environment above or below its already-met target would offer extra confirmation to the decline’s durability today.

Another ugly day tomorrow would be the closest analog to a 1987-style crash setup that we’ve seen in quite awhile. Not that a bounce Friday wouldn’t still be vulnerable, but extending down sharply Friday should attract more reinforcements than counter-trend sponsorship.