Post-open Review… Last bullets.

Pre-open surge reaches highest target… BONUS VIDEO!

The narrow and largely undefined overnight range broke higher one hour before the open. Touching obligatory resistance at Friday’s 2461.25 high reacted back down to the overnight range’s downtrending resistance.

The trendline had become support, and its test launched a recovery to fresh highs confirming its breakout. Just recovering 61.8% of the breakout suggested already the pattern would extend higher. In fact, the open was greeted at or above Friday’s high and extended sharply from there.

This morning’s 2465.75 bias-up target had become the likely objective for any fresh high. An interesting RSI setup along the way essentially confirmed the target was in-play. [WATCH THE VIDEO(S) BELOW FOR A QUICK 4-6 MINUTE LESSON.] Its reaction down failed to renew the bias-up signal, but this is a bias-up environment.

Despite being a bias-up environment, extending higher this morning isn’t assured. The high’s overbought RSIs don’t require being retested since they developed during the open, but it’s still likely. Extending higher at all would next target 2469.50. Breaking under the 2459.75 bias-up signal when the bias environment is lapsing would trigger a deep intraday pullback underway. This is NOT the likeliest scenario, unless it were to resolve back in positive territory.

LESSON: 1-minute RSI diverging against a persistent 3-minute RSI.

Several minutes later…