Post-open Review… Fourth time’s a charm?

Open’s surge rejects bias-down tests for bias-up trigger.

The pre-open Market Tour ended as an overnight bounce up to unchanged at 2827.00 began collapsing. It extended to 2815.00, and then blipped-down to 2813.75 in reaction to 8:30’s econ report. Firming from there greeted the open at 2820.00, where price immediately surged. And surged.

Suddenly the probe under this morning’s 2823.50 and 2816.00 bias-down parameters had become a threat to trigger the 2835.50 bias-up signal. Which did trigger, and just met its 2842.00 bias-up target. Persistently overbought 3-minute RSI remains persistently overbought.

Now might be an appropriate time to pause for a message from this week’s sponsor, the failed intraday rally. The pattern could be solid, and could be guaranteed to repeat again, multiple times. But not necessarily today. We’ll certainly monitor for a reversal setup, and keep the door open to retracing this morning’s surge, but a reversal could be delayed.

Back to regularly scheduled programming… Greeting the open back above yesterday’s lows and maintaining that recovery forms an Isolation setup. Avoiding yesterday’s lows today and tomorrow would target a retest of this week’s ~2860.00 high, which exiting the bias environment above its 2842.00 bias-up target would help. Rejecting the setup today would be very bearish, and once again there is no “unfinished business” above. Back under 2837.50 would suggest a reversal is underway.