Post-open Review… Off the precipice?

Post-open rally backs away from the ledge.

The pre-open recovery up to 2786.50 was retraced 8 points to greet the open at 2778.25.  Half of the opening 15 minutes of volatility elapsed without probing any lower. Perhaps that was just the confidence booster needed to reinvigorate the overnight gains, but more aggressively. Surging through the first half-hour extended up to 2800.50 before a reaction down that actually threatened to reverse.

And that delayed reaction down did extend to 2788.50. Which might yet break lower — its reaction bounced 9 points, but only temporarily as most has been retraced back down to 2791.50.

Any lower would start to signal momentum reversing down. Remember that exiting the morning bias environment (or entering the noon hour) back under a relevant level like yesterday’s 2786.50 noon hour high would be bearish. Otherwise, an afternoon decline become more difficult, and the door would remain open to a short-squeeze.