Mid-day Update… Optimism finds a hole.

Noon hour rally extending sharply higher.

The first hour’s multiple wide swings weren’t offering much information to its ultimate resolution, or it was offering plenty of contradictory information. But we knew its ultimate resolution would be substantial. In fact, dipping to test the 2674.00 bias-up signal down to 2672.00 during the bias-up environment created a slingshot effect that resumed the overnight rally.

But that’s not substantial. This is:

The noon hour’s entry was soon retesting Monday’s highs up to 2684.25. Not much later at all, attacking the morning’s 2681.00 bias-up target and then the afternoon’s 2688.75 bias-up target. The afternoon’s 2693.00 renewed bias-up target was part of a consolidation, but it has resolved up to the next higher objective above 2684.25, which is 2696.75.

1-minute RSI is diverging negatively, while overbought 3-minute RSI is at least no longer persistently overbought. Nothing requires extending higher. Reacting down a little could mean reacting down a lot, especially back under 2693.00. Not reacting down at all could mean extending a lot, with the next higher objective being 2721.50.