Mid-day Update… Step-by-step.

Bounce is recovering resistance.

The first step to forming a bottom is to stop falling. The second step is to consolidate. Only then can an upleg launch. And without an upleg, the consolidation can still only a continuation pattern.

So, it’s interesting that this morning’s drop to 2046.00 has crept up gradually to test what had been 2056.00 lower prior highs. And it’s interesting that the 2055.25 bias-up signal is now being tested (invoking the grace period).

Triggering bias-up would suggest the pullback had ended and that momentum is reversing up. No upside potential can be highly confident in negative territory. The decline would resume back under 2053.25.

Two landmarks above are 2061.00 and 2063.50, whose recoveries coming out of the bias environment would help to confirm momentum still reversing up. Otherwise, there’s no bullish reason to retest the lows, whose RSIs are not oversold.