Monday afternoon”s sellers gained traction

Monday afternoon”s sellers gained traction for their effort — the bias environment was exited at 2:30 under the noon hour”s low, and the final hour was entered under the bias environment”s low. Of course, that was the case at Thursday”s low, which immediately reversed back up to retrace all of a 42-point plunge. But the recovery didn”t extend any Friday, and if the setup is still influential, then Tuesday won”t rally, either.

That can be invalidated Tuesday”s open by immediately recovering Monday”s 1979 bias environment high, and maintaining it. That”s more than 11 points, not especially difficult in this environment. Which would be that much more bearish not to reject Monday afternoon”s sellers at Tuesday”s open.

Rejecting the downside would likely resume the corrective bounce, next targeting 1996-2000. Extending Monday”s decline would target 1953.50, and then 1944, and then much, much lower. Details and other markets coverage are discussed in the post-market Tour recording linked here:
https://roddavid10.mitel-nhwc.com/join/shwtphh

After 6:30 ET, use one of the following links to monitor the overnight Globex action:
Win XP-Friendly — http://anymeeting.com/831-529-426
non-xp friendly — https://roddavid10.mitel-nhwc.com/join/bfyytsh