Post-open Review… Traction rewarded.

Reversal setup avoided, producing fresh highs.

The pre-open dip back under the 2789.25 earlier Globex low had reached 2785.50. Having probed yesterday’s high overnight, maintaining the reversal through the open would have formed a bearish Globex-flip. Two hours still remained before the open, so the question I posed during Market Tour was whether the dip would be maintained.

It was not.

Its reaction up greeted the open at or above the 2791.50 bias-up signal. Price gradually improved — gradually, choppily, but not steadily in contrast with yesterday’s opening surge. The 2797.00 bias-up target was met and held without renewing bias-up, but its 2803.00 renewed bias-up target was met (to within 3 ticks) anyway.

All of which may have been the product of opening sponsorship, fulfilling the traction earned by yesterday afternoon’s buyers. Since violating a pullback limit at 2800.50, the high was retested to within 1 tick of 2803.00. But there was no interim accumulation, and no complexity had formed. The recovery attempt was premature.

In fact, the recovery attempt has retraced entirely to touch a sell signal at 2796.75. Yesterday afternoon buyers have been rewarded. And soon the bias-up window will begin lapsing. Triggering a sell signal would be credible for reversing the trend back down to at least correct a portion of yesterday’s rally. But back above 2801.00 would no longer be premature to resume the rally.