Mid-day Update… When is a rally, not a rally?

DON’T FORGET: I’m away today between 1:30 – 3:15 ET.

A runaway rally this morning wasn’t likely. The immediate surge’s template did kick-in, and it was very productive. The 2050.00 pre-open low rallied 30 points to attack 2080.00.

None of which changed that the origin’s timing was early. Again. Yesterday’s was late and this morning’s was early. Both were retraced entirely.

Actually, this morning’s doomed rally was reversed.

Besides its timing, this morning’s rally was doomed for originating above 2048.00. Now, without ever having put into play 2048.00, its break has extended down to with 3 ticks of the next lower support of 2035.00.

That low was met with the noon hour having elapsed 61.8%. Reversals there and then tend to hold. That is, they tend to hold a retest, especially if RSIs were to diverge positively. Already attacking 2044.00, a bounce has room up to 2048.00. Not holding the low’s retest — down to 2030.50 — would next target 2027.00 and 2022.00.