Post-open Review… Sunny side down.

Rally setup signals inversion, and inverts.

Yesterday afternoon’s buyers had gained traction for their efforts, making this morning likely to trend up. The setup is always vulnerable to inverting — to signaling the opposite — in this case, by trending down through the open.

The open trended down.

The open trended down, after a pre-open bounce had retraced a healthy 61.8% of the pre-open drop. Sellers were refueled, and they exploited the opportunity.

The 2069.25 opening print, which is also this morning’s bias-up signal, immediately reversed down. The 2057.75 bias-down signal was soon tested. Ranging sideways around it through 10:15 invoked the grace period, but the decline resumed down to the 2050.50 bias-down target.

That might have been an attractive buying opportunity — fulfilling the downside target, especially while RSIs diverged positively, which they were doing. But the inverted morning rally signal suggested otherwise. Now an extra downleg has touched 2043.25, its reaction up testing 2049.00.