Post-open Review… Just negative sentiment ahead of payrolls?

REMINDER: I’m away from the screens after this morning… So, Daily Spot and Market Wrap will be published overnight.

The overnight attack on 2884.50 was recovered to attack the 2895.50 bias-down signal before the open. Its reaction down to within 2 ticks of the 2888.75 bias-down target was retraced entirely. Ultimately, the bias-down target was exceeded through 10:15 to renew the bias-down signal.

Renewed bias-down targets were essentially 2884.50 and 2880.25. Both have been probed down to 2877.50.

Exiting the bias window back above 2888.75 would have upside potential to fill the gap at yesterday’s close back up to 2899.00, possibly also launching a more powerful rally. Meanwhile, oversold RSIs at the 2877.50 low require a retest. Neutralizing its test and exiting the bias window back above any relevant level could start to seal a bottom.

Testing the 2877.50 low could visit 2875.00. Any lower through a relevant window would start to target 2857.00, and more so, put the market on defense. Currently, the drop from last week’s highs could prove to be backing-and-filling to negotiate negative sentiment ahead of Friday’s Employment Situation report. Any deeper for any longer would start to signal a negative reaction coming from Friday’s report.

Meanwhile, a bounce to 2885.75 is trying to reverse up prematurely, before neutralizing oversold RSIs. Which could happen, albeit less likely. But back under 2882.50 would signal the bounce was a detour, and the low’s retest remains intact.