Post-open Review…Double-edged sword.

Overnight rally fulfills target, attracts sellers.

Any influence of overnight price action on intraday must be obvious during the opening 15 minutes of volatility. So, meeting the 2471.00-2473.50 objective overnight and already retracing it left the open two divergent options.

The first option was to repeat the rally. The 2471.00-2473.50 objective is still resistance, but it can at least be retested intraday. The challenge was a pre-open bounce that already had retraced 61.8% back to the overnight high. That’s significant resistance. And it held.

The second option was to extend the overnight reversal down. More so, not to allow the opening 15 minutes to create any reversal setup, let alone to recover any relevant resistance.

The latter option developed, dipping back into yesterday afternoon’s range. And then deeper to its lower-end at 2462.50. Bounces have resolved down, putting into play an offsetting test of the 2459.00 bias-down signal, which has now been attacked to within 1 point.

By the way, testing 0the 2472.50 bias-up signal overnight doesn’t equate to testing it intraday. So, it wasn’t rejected intraday, and an offsetting test of the 2453.00 bias-down target is not required. But it’s still likely if 2459.00 is broken going into or coming out of the noon hour. Otherwise, we can’t yet rule out  a bigger recovery.