Post-open Review… No takers.

Gap down only worsens.

The 2775.00 bias-down target held several tests before the open. One of its reactions peaked at the 2782.00 bias-down signal, and still resolved down to 2771.25 before the open. Its reaction only attacked 2780.00 before the open.

Post-open action also repeatedly tested 2775.00. Which was still being tested at 10:15 to avoid renewing the bias-down signal, but neither was its test rejected. And this is still a bias-down environment. In fact, fresh lows touched 2765.50.

A knee-jerk reaction to a non-financial headline triggered that last push lower, which stretched the rubber band to now snap back up sharply. The 2775.00 bias-down target’s resistance is now being probed, and maintaining its recovery would be credible for extending higher. However, it’s being attacked by the first reaction up from the prior trend’s extreme, which has a horrible track record for triggering reversal signals without yet correcting by 61.8%.

2765.50 also tested last Friday’s prior low at 2767.00. There’s one chance for its test to launch a durable recovery. Not maintaining the recovery above 2775.00 and breaking back under 2770.25 would next target a test of the 2756.00 area.