Post-open Review… Just beginning.

Post-open bounce snaps back down. A lot.

The pre-open test of 2459.00 was duplicated at the open. Its 5-point reaction up fulfilled the bounce to 2463.00 described in the Market Tour as being optimal before shorting. Potential for extending higher began deteriorating with every minute that didn’t leverage the bounce into a rally.

Potential for extending higher disappeared entirely as the 2461.50 bias-down signal failed to hold. Aided by a rumor (yesterday it was a headline) the drop extended down through the 2455.50 bias-down target in time to renew the signal. The renewed bias-down target at 2450.50 was soon tested down to 2449.75.

A corrective bounce has returned to 2450.50. Any lower low would essentially confirm this morning’s downleg remains intact, and intends to extend down considerably. Yes, this could be one of those days — relentless downtrending interrupted only briefly by substantial bounces.

Could this be a low, instead? The 2450.50 renewed bias-down target is essentially the halfway point back to last week’s lows. That’s not often durable. Back above 2457.50 would be more credible. And the gap back to Friday’s 2440.00 close wants to be filled, probably down to 2437.50. That doesn’t include last Thursday night’s lows that are likely to be tested, too, and broken on the way to 2425.24 and 2421.00.