Post-open Review… The market stabs back.

Taking a stab at resuming the rally has failed.

The overnight rally had consolidated an attack on 2850.50. A pre-open knee-jerk reaction to news surged to 2853.75, and then drifted to greet the open at yesterday’s 2848.00 opening print. Its attraction is neutralized. And there is no requirement to retest the pre-open high.

Since yesterday’s close I’ve been describing the distributive pattern forming. Early strength has become likely to be rejected early. This morning’s open offered an excellent — if not also extreme — example. The first half-hour plunged to 2833.75.

Bias is being influential, but also contradictory. Rejecting tests of both bias-up parameters puts into play offsetting tests of both bias-down parameters. But the 2835.50 bias-down signal was still being tested at 10:15 to invoke the grace period. And it held through 10:30 to trigger no-bias.

The 2843.00 bias-up signal should define the no-bias environment’s upper-end. It’s being tested now. Exceeding it this morning would be “no-bias trending” that requires being retraced. Holding it has room down to the 2835.50 bias-down signal until the no-bias environment lapses, or else probing any lower would also be no-bias trending. The most bearish scenario would start dipping again, and break lower into the afternoon.