Who ordered cold water?

Optimistic week may be fulfilled already. But the session isn”t closed.

Pervasive optimism into the pre-open econ report made an initially negative knee-jerk reaction likely to recover and resume the rally. That would have been bullish for this afternoon.

Instead, the favorable knee-jerk reaction may have satisfied the influences that got us here.

Being a Friday, the morning”s bias-up persisted through the noon hour, at least midway through. That”s when ranging around 2 points either way around 2066.00 started breaking lower. This afternoon”s 2058.00 bias-down signal was still being overlapped, but the grace period quickly fulfilled the 2053.25 bias-down target.

Down to 2052.50. That”s under the overnight low. 

Had this leg developed immediately following this morning”s favorable reaction, then it would have been absorbed by now, marginalizing sellers for the day. Instead, this afternoon”s bias environment is vulnerable to extending down much deeper. Just hovering around the 2053.25 bias-down target for an hour would be likely to trend down into the close.