Mid-day Update… Pessimism rules.

Bias-down avoided ahead of FOMC events, but not selling.

This open’s recovery to the 2144.00 overnight high did not extend higher. The 2139.25 open gave way just minutes before coming within view of the bias environment lapsing. No until the noon hour had been entered did its break accelerate, sliding to 2131.50 at the noon hour’s low.

Exiting the noon hour bounced to 2137.50. Another reaction down held comfortably above the 2133.00 bias-down signal to avoid triggering it. This is a no-bias environment.

While opening strength didn’t trend higher, it did hold up high enough and for long enough to create an anchor. The anchor creates context for assuming any subsequent selling pressure is weak-handed, temporary. That selling pressure had room down to 2133.00, which the noon hour held as support. Now a lot of selling pressure has been expended without gaining traction for the effort, and never probing negative territory.

The most bullish scenario would greet FOMC from above 2140.50, but that seems unlikely now. Even that wouldn’t necessarily prevent an initially negative knee-jerk reaction down, but the reaction would likely recover. Regardless, not quickly recovering a reaction down would leave upside attractions behind.