Post-open Review… Contained optimism.

Pre-open pullback holds resistance… and support.

Reacting down from the overnight test of 2684.25 isn’t surprising, since it’s the next higher objective, or the room for noise above 2674.00 and 2681.00. Reacting back down to 2677.00 isn’t surprising either, since it’s the open’s preliminary level.

Surprising, or unusual, is that the first hour has essentially produced six 5-6 point swings, each overlapping 2677.00 and the 2681.00 bias-up target — three of the swings during the opening 15 minutes of volatility. And still no resolution.

The 2674.00 bias-up signal did trigger. But its 2681.00 bias-up target is already met. Often. It’s still a bias-up environment that could break higher anyway. But meanwhile fresh lows should be limited to testing 2674.00 as support during this window.

I had assumed during the Market Tour that hesitating to test 2684.25 would at least reflect restrained optimism, potentially bullish from a contrarian perspective. New information arrived later, that the reaction down was back under Monday’s 2681.50 prior high. Monday’s prior high, not yesterday, but the Isolation setup still forms by remaining under the prior high.

So, the opening range has formed a position of weakness. It’s able to launch a probe of fresh highs, e.g. 2684.25. But from a position of weakness that would be doomed failure. And there’s no “unfinished business above,” so a break lower is possible at any time.