Post-open Review… Hunkering back down.

Recovery extends, until defensive posturing resumes.

The overnight recovery to 2649.00 had been retraced to 2634.00 before the Employment Situation report. Its reaction attacked 2649.00 to within 1 tick, then greeted the open 10 points lower. The open surged from there until testing the 2656.00 bias-down signal as resistance.

And since testing the 2656.00 bias-down signal as resistance, the market has dropped from there.

The 2647.25 bias-down target was still being tested as support at 10:15, so bias-down wasn’t renewed. But it’s still a bias-down environment, now probing 4 points under the 2634.00 area where the Employment Situation report was greeted.

Nothing requires this morning’s drop to extend, or precludes it from closing back above 2644.00. But closing under 2644.00 is still likely to be by a wide margin, and then also likely to extend into Monday’s open. While buyers aren’t marginalized in this pattern and could still retake control, I suspect they won’t.

Recovering back above 2647.25 through a relevant timing window would help the bullish scenario — especially if recovered after the reaction China’s retaliation has been absorbed.