Post-open Review… A burned bridge too far?

Probing under critical support.

The pre-open test of 2709.00 by 3 ticks didn’t qualify as a pre-open test, so it couldn’t be absorbed to form a durable bottom. And by printing fresh lows under the earlier 2714.00 low, an opening bounce  was likely to peak at 2721.00-2723.25.

The bounce limit was thoroughly tested before finally reversing down. The recent Ascending Triangle’s oversold RSIs at 2712.25 had been neutralized already pre-open, and presented little friction to slow a collapse to 2692.25.

A bounce limit was soon violated, and a buy signal eventually triggered (after a failed test). Its minimum bounce target in the 2711.00 area is being tested now. There’s potential for extending to 2715.25, but no requirement.

Back under 2702.00 (being tested now) would start to signal the bounce had ended, whether only to retest the low down to 2690.00 or to extend the downleg. Nothing prevents extending the decline much deeper. The next major objective below is 2670.00, unless today’s close recovers the morning’s highs. Extending the decline also has no pace and no slope too fast or too deep at this stage.