Post-open review

The trend is your friend… until it”s not.

This week”s pervasive optimism enabled a favorable reaction to the pre-open Employment Situation report. The 2064.50 bias-up target defined the reaction”s ultimate pre-open high. 

The reaction down had room to test 2057.50-2058.25 (“X” on the chart image), filling the gap back to yesterday”s cash session close. It reacted up once, and then held two later tests, helping the 2059.00 bias-up signal to trigger easily.

In fact, the bias-up target was being retested at 10:15. Retested, but not exceeded. The bias-up signal is not renewed. This is still a bias-up environment, and fresh highs were probed up to 2068.00.

Now the bias environment”s lapsing at 11:30 is coming within view 10-15 minutes out. The bias-up influence can be overcome. Testing 2060.00-2062.00 into the bias environment exit or noon hour exit would be postured to extend down well into negative territory through the afternoon.

Otherwise, the post-open recovery can continue drifting higher, next targeting 2071.25. This being a Friday, the morning”s bias tends to persist through the noon hour. So, reversing down is less likely, and more difficult to recover if being done.