Post-open Review… Rubber band stretch.

Late pre-open break has tested supports.

Late pre-open breaks from narrow directionless overnight ranges are often fully retraced back to their origin, much sooner rather than later. That’s our anticipation for this morning’s drop from 2727.00 down to 2716.00. Especially after also anticipating the break would extend down to 2715.00 and potentially 2711.00, and has.

I reiterated these downside objectives in my last-minute update to the chaRTroom. I also noted that we don’t know which if either of 2715.00 or 2711.00 would launch the break’s recovery, or how the break’s complete recovery would then resolve. Price action on the way back up should be clues informing the latter.

The 2718.75 bias-down signal has triggered. Its 2710.50 bias-down target has been met to within 3 ticks. It could be met entirely, but won’t become “unfinished business below” if left outstanding. Meanwhile, this is still a bias-down environment, and the morning may break lower still.

Recovering the 2718.75 bias-down signal through the bias environment lapsing would bullish, especially if confirmed above 2721.50. The minimum objective would be to retrace the pre-open break, and potentially to resume yesterday’s rally.