Post-open Review… Anchors away.

Gap up retraced.

Unchanged is natural support. Yesterday’s unchanged is its 2471.00 cash session close. And a 4-1/2 point slide probed it by 1 point in time to snatch a clean bias-up signal above 2472.50. The slide developed in time to invoke the grace period, now putting into play an offsetting test of the 2463.50 bias-down signal.

Presumably, the drop was triggered by news of the Russia investigation/witch hunt expanding to President Trump’s business dealings. Extrapolating from an interview released last night in which Trump said this would be going too far, Special Counsel Mueller would be fired shortly. The market is obviously concerned with the extra depths of uncertainty that would/will bring.

Immediate fallout has extended down to 2465.50. That’s essentially yesterday morning’s “lower prior highs.” Its test is reacting up 7 points while still being the first reaction up from the previous trend’s extreme. Oversold RSIs require an eventual retest, which this morning would likely reach 2463.50. Otherwise, recovering 2469.75-2470.25 would start to signal the news was absorbed already — that’s being probed now by more than 2 points, and wasn’t yet touched when I began writing this sentence.

As for the gap up, it did not extend higher, so it is not an anchor that preserves the uptrend. It was maintained through the open, so its 2474.00 opening print does require an eventual intraday retest, however that may resolve. And the 2476.25 overnight high is  a “new Globex trend extreme” that requires eventual retest intraday, too.