Post-open Review… Only a modest stretch.

Gap up’s reaction doesn’t collapse.

Yesterday’s pre-open rally had served to stretch the rubber band for post-open action to snap back down. Gapping up to and through prior highs would have trended up, but not extending higher only collapsed.

Today’s gap up to prior highs had touched the 2416.50 bias-up signal 1 minute before the open. Its reaction down to 2412.75 was retraced entirely, and probed the bias-up signal by 1 point. The test held again, despite this morning’s econ reports disagreeing with yesterday’s, which had been the catalyst to its collapse.

Now, too late to trigger, the 2416.50 bias-up signal has been touched, and not recovered through 10:30. Which doesn’t undermine that an offsetting test of the 2408.00 bias-down signal is in-play. Back under 2413.50 would start to signal that leg underway.

Resuming the decline would also mean fresh lows targeting a test of “lower prior highs” at 2399.00. Anxiousness ahead of tomorrow’s Employment Situation report will inhibit trending attempts more extensive than that, whether up or down. Rallying first, anyway — with only yesterday’s brief dip behind it — isn’t likely to extend, either.