Mid-day Update… Still make, or break.

Beige Book ahead.

Rallying through the first half-hour to test 2349.00 didn’t begin optimally. Does its reversal down to attack 2338.00 correct it?

The open’s problems finally caught up with it. Not extending this morning’s gap up. Not maintaining the probe above the bias-up target. Violating the pullback limit. Add those problems to those that have been mounting problems since the weekend. Not rallying until very close to Monday’s open. Delaying Tuesday’s recovery of the morning’s bias-down signal. Not gaining traction Tuesday afternoon.

All of which could have been absorbed. Indeed, the problems WERE being absorbed. Tuesday morning’s reaction down was recovered. And this morning’s reaction down entered the noon hour in positive territory. Retracing to this morning’s 2341.75 bias-up signal during the morning’s bias environment would have essentially put into play new lows. But its test was delayed until after noon, so its break doesn’t have to be fatal.

But its break is not yet recovered. In fact, 2341.75 is being tested as resistance as the bias environment is entered. The gap back to yesterday’s close and the 2337.75 bias-down signal were attacked but not triggered. Beige Book is due at the top of the hour, which undermines trending.

Any recovery potential will be based on recovering a prior high at a relevant time, like exiting the bias environment above 2343.50. Otherwise, back under 2339.00 would be vulnerable to resuming the decline.