Mid-day Update… TBIF.

Fewer chances to avoid capitulation, this being a Friday.

Potential for bouncing back up to 2093.50 bias-down target was fulfilled. Its test originated from the re-test of of this morning’s 2086.50 renewed bias-down target.

As described during the pre-market Tour, the most bearish template would do its best portray stability, if not a bottom. But being a bias-down environment, and so long as the bias-down target wasn’t recovered, that would be sponsored only by weak-handed buyers.

Also described during the Tour was the likelihood for an afternoon capitulation. (Not necessarily collapse, although that would be the next degree.) The noon hour has probed fresh session lows down to 2085.50, which invalidates the interim bounce. But that has created the basis for a Lunch Hour Reversal setup.

The Lunch Hour Reversal setup enters the noon hour of a down day above the open’s lows, and then isolates a fresh session low to the noon hour to  suggest that its sellers are weak-handed.

Today’s noon hour was entered at 2091.00. So, the setup would complete by exiting the noon hour back above 2091.00. The balance of the afternoon need not get back on the chairlift, but simply get off the downhill slopes. Get a hot chocolate. Enjoy the view.

The noon hour’s low has reacted up 4 points. That’s still a couple of points short of 2091.00. Just recovering this afternoon’s 2088.00 bias-down signal in time to avoid triggering it would not qualify for the setup. Late afternoon would still be vulnerable to capitulating. Otherwise, the bounce could extend up to 2098.00.