Post-open Review… Giving them rope.

Pre-open warning undermines post-open surge.

Among all current influences on the market, one continues to bear repeating: Optimistic extremes are no more than the rubber band being stretched so it can snap back down.

A pre-open surge up to the 2490.00 bias-up signal seemed to make this case as it collapsed through the open down to 2471.50. But that was nothing.

Flat-to-lower ranging through the open eventually broke higher in reaction to a Fed speaker, surging from 2470.50 to 2508.00. Now THAT’S a rubber band stretch.

And it was short-lived, now reversed down to probe under overnight lows at 2460.50.

Bias-up had triggered — late, and after meeting its 2499.50 bias-up target. Reversing to its 2467.25 bias-down target invalidates any requirement to retrace the 2490.00 bias-up target. That said, 2490.00 would be the target of any bounce.

The bias environment is soon lapsing. A bounce limit is being violated. Potential for testing 2490.00 now depends upon delaying the decline’s resumption, which this afternoon’s WedEX intends to do.