Post-open Review… Rolling over with the punches.

Non-market headline kills recovery.

This morning was likely to probe above yesterday’s 2733.00 high. So long as overnight action had not already the trend down, and so long as any pre-open dip was recoverable, some upside follow-through was all but obligatory. “Some” upside follow-through, meaning that it would be either durable or rejected.

Already retracing 61.8% of the overnight dip’s recovery down to 2725.25 was constructive. Fresh highs would have been more durable, but still vulnerable to reversing down. Already, 2730.50 was being tested just 2 minutes away from exiting the opening 15 minutes of volatility.

Then came the headline cancelling the N. Korea meeting. The knee-jerk reaction down to 2722.00 was extended by a plunge to 2714.00. Its reaction up barely touched the 2720.75 bias-down signal as resistance, and held it in time to trigger.

This drop’s catalyst is artificial. It crowds out what could have been organic selling from patient sellers awaiting those obligatory fresh highs. So, the question now is which path follows: Will the drop attract enough speculative buyers exploiting the non-market related price discount, or is the drop so deep that patient sellers have accelerated their plans. The latter could still resolve bullishly, but not soon.

Despite RSIs diverging positively on a retest of 2709.75, a break lower just touched 2706.00. Back above 2712.00 and 2715.50 would start to signal momentum reversing up. Otherwise, exiting the the bias environment under 2711.00 would suggest the bigger decline has already resumed.