Mid-day Update… Waiting on another shoe.

Morning’s recovery has stalled.

Quickly surging through 1978,50 extended to within 3 ticks of this morning’s 1996.00 bias-down target. First dipping to 1973.75 would have been rewarded by a 1998.00 target. So, no big deal.

Except…

Dipping first and extending higher would have laid two bullish eggs: First, the deeper dip would have expended more selling pressure, while vesting more buyers with an interest in defending against reactions down. Second, extending higher would have created more room for absorbing a pullback without it gaining traction.

Stated another way, rallying immediately at the open was optimistic. Having extended higher into the bias environment lapsing, literally as much buying pressure as could be expended for as long as it could be expended, without that optimism gaining traction for its effort.

Triggering this afternoon’s 1984.25 bias-down signal could open the door to much greater selling as the afternoon progresses. The only reliable bullish scenario at this stage would be to avoid triggering bias-down.