Mid-day Update… The downside of blow-offs.

Overnight rally’s retracement approaching unchanged.

This morning’s doubly-renewed bias-up fulfilled its 2829.50 up to 2831.25. Exiting the bias environment above 2829.50 would have put into play 2836.00. But back under 2828.00 would trigger a pullback to at least 2821.00.

2828.00 broke lower to 2821.00 before the bias environment even came within view of lapsing. It began lapsing at the 2825.25 renewed bias-up target. The choppy noon hour bounced a little higher to 2827.00.

It’s been straight down from there. This afternoon’s 2820.50 bias-down signal triggered, and its 2812.00 bias-down target has been attacked to within 5 ticks. Now a reaction up is testing last week’s 2818.00 highs as resistance.

Back under 2815.75 would signal the decline has resumed. As I described before the open, it’s difficult to expend enough selling pressure from such a high open to probe back into negative territory, let alone to close negative. That makes this reversal unlikely to reverse the trend down. Unchanged (2808.00-2812.50) is natural support, and sellers will need reinforcements to avoid bouncing into the close.