Thursday rewarded Wednesday”s recovery as

Thursday rewarded Wednesday”s recovery as little as possible. Not only by delaying the probe above Wednesday”s ~2085 highs until Thursday afternoon, but also by producing only two clean legs above 2085. And they were pretty small legs, barely attacking 2089.

That shallow reward isn”t so much pessimism as it is restrained optimism. Pessimism describes the final hour”s 11-point plunge attacking 2077. It wasn”t caused by excessive optimism stumbling. It”s likelier that the plunge became extended, and not the rally.

Still, RSIs were oversold at the 2077.25 low, which can be retested down to 2073. That”s unfinished business below, but it won”t necessarily prevent rallying first. In fact, oversold RSIs remain outstanding at Wednesday 1046 low.

Thursday afternoon”s 2091 bias-up target requires a retest. And its test is likely to retest Wednesday night”s 2093 high, which doesn”t otherwise require a retest. But since Thursday afternoon”s buyers didn”t gain traction for their efforts, resuming the rally Friday morning all but requires gapping up above Thursday”s highs (which would probably also form a “session-long rally” setup).

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