If so many setups Thursday rejected the opportunity to decline, then why should early selling pressure Friday be any more credible?
Pattern points… (Setups and technicals)
Dip after dip Thursday tested relevant levels, but holding them through relevant timing windows. Sell signal after sell signal was probed, with only one probing deeper than its first three minutes — and that required an assist from the noon hour’s noise.
Multiple buy signals were probed, too. They also all failed to extend any further than their 3-minute highs. No bounce recovered into positive territory, although Wednesday afternoon’s 1840.50 low was touched as resistance.
Despite multiple dips not gaining traction, Thursday’s only commitment was to remain in negative territory. A small attraction back to the structure at the noon hour’s low was neutralized by a post-close dip. And that dip was reacting down from the cash session’s last-minute bounce, so its sellers failed to gain traction, too.
Except for one feature, Thursday’s session was almost “ineffectual pessimism,” which often resolves bullishly. This still could. Almost any initial strength Friday would be credible for extending higher intraday. Meanwhile, the most bullish influence is that so many bearish influences weren’t productive.
What’s Next… (Outlook and opportunities)
This being a Friday, the morning’s bias signal tends to persist through the noon hour. And this being expiration, trending through the opening 15 minutes tends to extend in that direction throughout the day.
Look for at least one update overnight or ahead of the Morning Market Tour… My thoughts on the day’s econ calendar are linked here.