Mid-day Update… Optimism bubbles popping.

Three distinct rally efforts, each retraced.

Last night’s initial bounce up to 2569.00 was retraced to unchanged. Another overnight bounce extended through the open to attack 2578.00. It was retraced, too. Now the noon hour’s bounce up to 2576.00 has been retraced — largely, not entirely.

The post-open bounce’s retracement filled the open’s gap, which suggested wide-ranging sideways choppiness would develop. No further down, no new rally, just a wide range. Which the noon hour’s bounce fulfilled.

The last bounce also tested both afternoon bias-up parameters. They were rejected by triggering late no-bias. The setup’s likely test of this afternoon’s 2558.00 bias-down signal is being met now, and probed down to 2554.00.

Extending down further is possible, but more appropriate after the bias environment comes within view of lapsing, when it could more easily start the ball rolling (slowly) toward a late-afternoon decline. The decline could resume today, although it won’t be very easy on the afternoon ahead of tomorrow’s FOMC policy statement.