Post-open Review… Ranging again.

Fresh lows get squeezed as their catalyst evaporates.

Yesterday afternoon’s pessimism was proved to have overly-discounted this morning’s Fed chair testimony. Yesterday afternoon’s pessimism, the overnight pessimism, and then the post-open pessimism.

That last bit of pessimism was a pre-open recovery that let the open touch a 2720.00 buy signal instead of triggering it. Its reaction down attacked the overnight low and this morning’s 2698.25 bias-down target. The 2707.50 bias-down signal avoided triggering thanks to a grace period. The offsetting test of its 2726.00 bias-up signal was quickly fulfilled, probing it by 5 points.

That’s also a test of what had been yesterday’s next lower objective at 2729.00. Its resistance has reacted down to within 3 ticks of 2707.50. Nothing prevents the reaction from extending down to fresh lows. Nothing except the 2707.50 bias-down signal whose test should now define the window’s lower-end. Until the window starts lapsing.

Back above 2718.25 would start to signal the reaction down may have been absorbed. Meanwhile, the next lower objective is fresh lows at 2693.50, and potentially resuming the decline. THE decline.