Post-open Review… Digging Deeper.

29-point plunge already testing its objective.

Gapping up today could have given a recovery better chances for reversing the trend back up. Repeatedly recovering intraday dips without reversing above a prior high had kept alive last Thursday-Friday’s downside momentum. And if the Monday-Tuesday action wasn’t accumulation, then the next lower objective would be 2850.00.

That was quick. The first half-hour slid from its 2879.50 open down to 2851.00. That’s within 4 ticks of the objective, which is close enough for a new extreme. Bouncing to 2861.50 is is reacting down, which threatens fresh lows — and the next lower objective would be 2844.00.

The relatively late break from overnight ranging does keep alive potential for only a brief dip. The open maintained the break and extended it, quickly minimizing the potential for bouncing back into the overnight range. But quickly collapsing can also reflect weak hands that are sooner neutralized.

Regardless of this dip being a bottom, or only a pause, not already rallying into the noon hour would make fresh session lows likely.