Bias-down rally, and all that that entails.

[pay]The 863’50 bias-down signal was broken as support through 10:15. This inhibits bounces, but it doesn’t prevent them. And bounces it doesn’t prevent are doomed to failure. Recovering the bias-down signal through 10:30 would have invalidated the bias-down signal, so much as to make it a buy signal. But the signal wasn’t recovered by then.

However, the signal was recovered afterward, and its follow-through touched the 871’25 bias-up signal as resistance. That was 15 minutes ago, and the market still ranges here narrowly.

The bias-down signal says the bounce will be retraced back to its (859’00) origin – any bounce, however high and for however long. Back under 870’00 would be the first attempt so long as bounces then hold 870’50, initially targeting 865’50, whose break would target 859’00 – and probably lower to compensate for the delay.

If 873’50 is recovered going into or coming out of the noon hour, then a much bigger rally effort would be underway, putting off the retracement back to this morning’s lows.

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