Post-open Review… Isolated sellers.

Gap up holds on.

The overnight recovery from fresh lows was already stretching the room for noise around resistance. Pre-open testing of the 2710.25 bias-up signal extended sharply post-open. The 2722.75 bias-up target was pierced by 1 tick during the opening 15 minutes of volatility. Remaining above yesterday’s lows for that long completed the Isolation setup.

Already fulfilling the target created the opportunity for launching a new downleg. In fact, fresh post-open lows into the top of the hour tested 2708.00 as support. Choppily overlapping around the 2710.25 bias-up signal ultimately resolved up. Ultimately, not gracefully or relentlessly.

Although already met, the bias-up target was just retested by 1 point up to 2723.75. Although already held, the bias-up target can be exceeded. This is still a bias-up environment. Being a bias-up environment, reactions down have room to test the 2710.25 bias-up signal as support.

It’s too late to reject the Isolation setup. So, reactions down should be absorbed, and the afternoon should extend the recovery — probably into the weekend and possibly out of it. Combined with having met and held the 2701.50 pullback target, a retest of Friday’s highs or higher is likely. By the same token, NOT extending higher this afternoon could become very bearish.