Post-open Review… A helpful push.

Pre-open fall over the edge extends post-open.

The overnight drop was on the verge of absorbing its reaction to CAT’s warning by trying to bounce back above 2653.00. But that was retraced back down to and through the earlier 2648.00 low when NVDA added its own warning. Recruiting NDX’s sympathy so near the open triggered a slide to 2637.50.

Post-open action extended down to 2626.50 while 3-minute RSI remained persistently oversold. Meanwhile, 1-minute RSI had begun to diverge positively, and soon 3-minute RSI left oversold territory. A bounce is now probing above 2634.50 with potential up to 2643.75-2645.00.

Holding last week’s repeated tests of “lower prior highs” at 2625.00 had formed the basis for a bounce. Bouncing into Friday’s high wasn’t arbitrary, having neutralized attractions above. There is no bullish reason to be revisiting 2625.00.

2625.00 support is thoroughly chipped away. This morning’s low has attacked 2625.00 to within 6 ticks. It may not be quite so close as to qualify as impatient buying, so beware that the bounce may be shallower than 2643.75-2645.00. Regardless, any bounce should be only a formality before actually touching 2625.00. And touching 2625.00 should offer little if any noticeable support before revealing an air pocket below.