A bias-down that doesn’t want to be.

[pay]The bias-down target was tested down to 841’50 before reversing back up to the 848’75 bias-down signal. The signal was still being tested at 10:15, invoking the 15-minute grace period to prove whether the signal triggered.

Since the target was already met, the signal’s timely recovery through 10:15 would have equated to being a buy signal. Instead, holding it through 10:30 confirmed the bias-down. Traders whose strategy would sell on this signal might not have sold because the bias-down target was already met, neutralizing some or all of its magnetic attraction.

While awaiting a trading parameter that points down, a recovery above 849’25 would instead point higher to potentially probe Thursday’s high. Under 845’00 would essentially put into play a retest of the 841’50 low.

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