Post-open Review… Is it, or isn’t it?

Bias-down avoided at the very last second.

The open’s 5-point was relatively narrow within 2734.00-2739.00, especially compared to the two prior sessions. But it was overlapping the 2734.75 bias-down signal in time to invoke the grace period, which lapsed at 2729.25…

Or, did it lapse at 2740.00? The 11-point difference is the spike up triggered by a Trump China trade tweet. Bias already wasn’t clean, but the tweet prevented a “clean” late bias-down.

Being a tweet reaction, we anticipated its retracement. We also discounted its influence. We also noted that a trade already underway hadn’t violated its bounce limit’s first 3-4 minutes. And now fresh lows are testing this morning’s 2727.75 bias-down target.

The trade already underway was targeting a couple of ticks lower, which is also fulfilled — down to 2725.25. RSIs are avoiding oversold territory, which is NOT a buy signal, but which also allows a buy signal to be very productive.

The nearest buy signal currently is back above 2731.25, preferably triggered this morning to exit the bias environment in rally mode. Continuing lower would still have potential down to 2707.00 (i.e. 2701.50-2708.50), if only to absorb the tweet’s reverberations.