Mid-day Update… Practice run?

Morning plunge remains contained within prior range.

Plunging from 1988.00 down to 1978.00 in 5-7 minutes was the character of price action expected from the topping template. That happened this morning after the EIA report on Crude Oil triggered a knee-jerk reaction up to 1991.00.

Another characteristic of topping? Extending down. That did not happen this morning. Like the bounce above 1986.00 to 1991.00, the reaction down to 1978.00 was contained entirely within yesterday’s late-afternoon range.

But there’s nothing inherently bullish about that. Strong-handed buyers would have exited the bias environment probing fresh highs. Strong-handed buyers may yet exit the noon hour probing fresh highs, but their timing wouldn’t be optimal. Regardless, probing fresh highs during the noon hour would be weak-handed and doomed to failure like this morning’s 5-point probe above 1986.00.

Meanwhile, an offsetting test of this morning’s 1977.00 bias-down signal has become “unfinished business below.” It must be tested eventually. Any interim rally would be suspicious. And testing 1977.00 could resume the character of selling expected by the topping template.