SPECIAL OVERNIGHT UPDATE: Sunday night”s

SPECIAL OVERNIGHT UPDATE:
Sunday night”s opening surge back to Friday afternoon”s high wasn”t an anomaly. It consolidated narrowly back down to 2106, then resumed rallying a couple of hours ago. Now 2115 is being attacked just minutes ahead of Europe”s opens. And RSIs are diverging negatively.

2115 is the lower-end of the 2114.75-2116.25 corrective bounce limit. Reversing down from here would be credible for launching a new downleg, but extending above 2116.25 would more likely retest Thursday”s prior high. That happens to be only 3 points higher at 2119.25 in this pattern, and its room for noise isn”t much higher. But its recovery would imply much more than that, resuming last week”s rally targeting new highs.

Another setup in-play is a “session-long rally” which rejects the prior afternoon”s downtrending, by gapping up above the prior afternoon”s high. Perhaps much more powerful would be to reject Friday”s entire session which had gapped down and trended down, by gapping up above its session highs. Those are bullish setups.

A substantial bearish setup remains possible. Hhaving fulfilled the 2114.50-2116.25 corrective bounce limit, breaking back under 2106 could resume Friday”s decline and retest last week”s lows under 2063. In other words, look out below if headlines don”t start aligning with price action”s suggestion that the Grexit can has been kicked further down the road.

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