Post-open Review… Keep it coming (for now).

Overnight rally extends post-open.

It could have gone either way. It usually goes the other way. Otherwise, it goes this way.

Not every setup has a binary resolution that will trend in one direction, or the other. But often a single-minded, relentless overnight trend will reverse at the open. Not reversing tends instead to extend the trend almost as relentlessly. A third option is very unlikely.

This morning’s choice was to extend.

So, having pulled back already from 2087.50 to 2083.00, post-open action surged through its 2085.25 buy signal to probe a fresh high. And still hovering or extending more than halfway through the opening 15 minutes of volatility, reversing down became very unlikely. Inverting the bearish WedEX was required by noon Friday, so this rally only invalidates it.

Higher highs touched 2092.50, taking RSIs overbought. Reacting down is overlapping a 2087.25 sell signal by a couple of ticks. Back above 2089.50 would resume the rally, next targeting 2094.50.

Extending higher after this morning will be more difficult as Fed Chair Yellen’s Senate testimony tomorrow morning comes into view. Rate hike rhetoric between FOMC meetings suggests the market will be challenged by bearish headlines. That’s a difficult proposition to attract new buyers.