Post-open Review… Worth the while.

Open’s slide makes upside target more attractive.

During the Market Tour I noted my reluctance to sell under the 2902.00 target which was just 6-7 points higher. I would be more inclined to buy a pullback for its likely recovery. But the open wasn’t greeted there. A slide suddenly began and extended through the open down to 2880.00. And I’m inclined to buy the pullback for its likely recovery.

In fact, we identified 2881.00 as a good spot for the drop to make a stand. The drop originated from an overnight range (blue triangle in lower chart) that broke within 60-90 minutes of the open, which is often impatient weak-handed sponsorship. The 2884.25 bias-down target has held as support through 10:15 to avoid renewing the bias-down signal. A bounce has already touched 2888.50.

None of which prevents retesting the 2880.00 low, or even from extending the decline. There is a “session-long decline” setup that maintained its gap down under yesterday afternoon’s 2892.00 bias environment low after having trended up into the close. So, all but one timing window’s low could be probed intraday.

For now, we’re focused only on intraday setups, but also cognizant of the potential for violated pullback limits to produce fresh lows — and also willing to consider buying fresh lows for another bounce.