Post-open Review… Best laid plans.

Retail selling offset by resolution rumors.

Our premise was that negative knee-jerk reactions to the weekend’s government shutdown would keep this morning under pressure. Last night’s gap down to the 2803.75 bias-down signal all but affirmed the expectation. A pre-open surge to 2812.00 only returned to unchanged, attacking the bias-up signal to within 2-3 ticks. Anyway, it reacted back down 4-1/2 points, presumably preparing for all of that retail selling pressure.

Which never appeared. Or, if they did, retail sellers were overwhelmed by buying in reaction to favorable headlines of resolving the shutdown today.

The nearest inflection point to consider fading was 2811.25, with a stop or stop-and-reverse to long above the 2812.50 bias-up signal. Working through it eventually formed a detached bar that required an immediate resolution. That resolution was up, and Friday’s 2815.00 high was soon retested. And soon exceeded.

Bias-up was not renewed because this morning’s 2819.50 bias-up target was only being overlapped at 10:15. But this is still a bias-up environment. It has been exceeded anyway to 2822.50, and the next higher objective is 2824.50. Back under 2818.50 would signal a reversal underway, albeit limited to the 2812.50 bias-up signal.