Post-open Review… That was then, this is now.

Overnight bounce fails, fulfilling sellers.

Several potential recovery patterns were trying to form ahead of this morning’s open. Ultimately, either they didn’t form, or didn’t trigger.

The 2750.25 overnight high stopped 2 points short of piercing yesterday afternoon’s high, whose opening recovery would have formed a “session-long rally” setup. The Head & Shoulders broke lower, instead of higher. And opening back within yesterday’s range had isolated the overnight probe under yesterday’s range, but it has been retested already.

Also, the 2738.50 bias-up signal held its test, putting into play an offsetting test of the 2720.00 bias-down signal.

All of which is potentially bullish: Never actually probing yesterday afternoon’s high means the session-long rally never formed, so it was never rejected. The Head & Shoulders target was met. And the Isolation setup may be forming elsewhere this morning.

The bias environment was entered above yesterday’s low at 2737.50-2740.00. Exiting the bias environment back above its entry would isolate its probe under yesterday’s low. Similar to the overnight Isolation setup, but not optimal. So, its reward would still be a retest of last Wednesday’s highs, but the recovery must produce fresh highs today.

Already, the 2738.50 bias-up signal is being retested. So, the opportunity to bottom is being exploited, but there’s also a narrow window. There’s a big reward to bottoming, but there’s also a big consequence to not bottoming — 2685.00.