Post-open Review… It’s not going to be that simple.

Air pocket is retraced.

Bouncing off the 2562.00 overnight low attacked 2570.00. Its reaction down retraced 61.8% of the bounce, a constructive pullback — if it could hold. But greeting the open at this morning’s 2566.00 bias-down target immediately slipped. An air pocket under 2563.75 triggered a sell signal 2 ticks lower, and plunged 8 points to 2555.50.

2557.50 was the air pocket’s minimum objective, and it was only overlapped, not broken. Ranging there launched a rally that retraced the post-open drop. All of it. Gapping down through the 2566.75-2568.50 area has recovered back through its upper-end to 2569.25.

Entering the noon hour above 2570.00 would be constructive to isolating sellers to the morning. Exiting the noon hour above 2574.00 would help to confirm. But back under 2566.00 would target at least a pullback to 2560.00, and potentially an even deeper decline.

The challenge here couldn’t be more relevant. Trapping this morning’s drop would suggest it is a capitulative end to the pullback from last week’s highs (see the bigger picture chart below). There is a brief opportunity to bottom after fulfilling and reacting to downside targets and supports. NOT isolating sellers by today’s close — instead, letting them gain traction for the open’s effort, and not letting the recovery gain traction for its effort — would further suggest a deeper decline is underway.