Post-open Review… Isolated sellers.

Overnight dip recovers before the open.

Sideways ranging at yesterday’s late 2737.50 low didn’t break lower overnight until Europe’s opens. Then it broke a lot lower, touching what is this morning’s 2729.25 bias-down target. I noted in the First Trade blog post and during the Market Tour that any remaining potential for a morning rally largely depended on that being the low.

More so, the open would need to be greeted in rally mode.

Soon bouncing off of 2729.25 spiked up to 2740.00 on China trade headlines. The open was greeted at what is this morning’s 2736.75 bias-down signal. A quick blip-down held 2734.00 support before resuming the pre-open recovery.

After holding a test of the bias-down signal, triggering no-bias put into play an offsetting test of the 2744.75 bias-up signal. It was tested on the way up to 2748.50 — which is resistance from yesterday’s rally. It’s also no-bias trending, since the bias signal should define the window’s range if tested.

A dip to at least 2744.75 is required (now being tested). Resuming the rally is also likely, and likely to extend higher, whether to test this morning’s 2751.00 bias-up target or to retest yesterday’s highs. Neither of which is required, but the burden of proof is on sellers.