Pre-close View… Fire works (plus special announcement).

Knee-jerk reaction held… held again…

REMINDER: Join us in the chaRTroom at 4:03pm ET for the post-market Wrap. It will be extended to cover the bigger picture, since there’s no Saturday Review this weekend.

Shallow ranging off of the 2095.50 high had softened to 2093.25 when Fed Chair Yellen finally said something forward-looking. Apparently, a Fed rate hike in coming months may be appropriate.

MonthS. Not exactly affirming other Fed speakers that had been warming up the audience for June. Not contradicting them, either. Probably as dovish as possible given the circumstances.

Suddenly, we knew which of my three scenarios was unfolding: knee-jerk reaction down.

A sell signal triggered under 2092.75 quickly fulfilled its 2090.50 objective, piercing it by 3 ticks while RSIs became simultaneously oversold. Its reaction up touched 2093.50 which was a buy signal — expending literally as much buying pressure as was possible without actually reversing the trend back up. It was faded back down to fulfill the required retest of oversold RSIs at 2089.75.

Now comes the rest of that scenario: recover.

Back above 2092.25 has spiked up to 2094.25. The origin of the Yellen comment’s reaction has been retraced. And it has been probed a little. While that qualifies as a recovery, actually retesting this morning’s 2095.50 high would be optimal.

Meanwhile, there is potential for a new high close today, fulfilling the confirmed breakout’s outstanding requirement. It’s probably not a “new trend high close” which would also require its own subsequent higher close. But trend extremes tend not to develop around holiday weekends.