Mid-day Update… Tug o’ War

MARKET WRAP WILL BE HELD EARLY TODAY AT 3:03 ET.

Today’s session has been willing to trigger setups. But rather than go on to fulfill them, reversal setups form. And rather than fulfill them, another reversal setup forms. Today’s range isn’t so much range bound, as it is in a tug-of-war battle to influence direction.

The overnight rally only had to maintain through the open for extending the rally to its next higher objective. But the open was greeted back under the overnight rally’s last relative low — 2669.00 — which undermined the rally’s momentum.

The opening dip was deep enough for long enough to reject tests of both bias-up parameters. That put into play offsetting tests  of both bias-down parameters — 2648.75 and 2637.75 — but only got to 2652.50. And the attraction below didn’t prevent rallying…

…Rallying to fresh post-open highs into the morning bias environment into its exit. But the 2671.00 bias-up target was still being overlapped, so the morning’s bias-down parameters have become “unfinished business below.”

And now this afternoon’s 2663.25 bias-down signal has held as support to trigger another no-bias. Keeping with today’s new tradition, that didn’t prevent extending down. A pattern had formed that required fresh post-open lows, which are now being probed down to 2650.00 — which is also natural support at Friday afternoon’s high.

We have two competing influences: One is this afternoon’s no-bias environment. Probing under its 2663.25 bias-down signal came too late to trigger. It must be retraced entirely, unless the bias environment is exited under its 2655.00 bias-down target. That would help the other influence, which is this morning’s unfinished business below, at least to 2648.75.