Post-open Review… Restraining the optimism.

Gap up retraces, but not reverses.

Rallying out of Europe’s opens ultimately extended 10-11 points. Post-open enthusiasm did not follow. The 2478.00 opening print added a single tick before reversing back under this morning’s 2477.00 bias-up target and Thursday’s 2476.25 new Globex trend extreme.

The reaction also probed under “lower prior highs” down to 2472.50. It was already a little late for only threatening to reject the 2472.00 bias-up signal, let alone not even touching it. So it triggered. This is a bias-up environment, whose target has been met.

Overbought RSIs at the 2478.25 high don’t require being retested since they develope3d during the open. But the 2478.00 opening print above all prior highs does require being filled. At least, at some point, not always before a more significant reaction down.

Filling the open’s 2478.00 gap without exiting the bias environment above the open’s high would suggest a top is forming. Meanwhile, back under 2473.75 at any time would start to signal momentum reversing down for a deeper correction.