Bias-down siganled.

[pay]The noon hour was entered at the lower-end of this morning’s ESm 1366’00-1368’00 bounce target, and exited at the upper-end. Then S&Ps began tumbling, eventually down to 1357’25 where last night’s Globex low was pierced by 1 tick. The bias-down signal’s break has extended far enough that the 1362’00 signal shouldn’t be recovered

The bias-down target is another point lower, but I would consider tightening my stop there instead of covering, because of the bias-down environment. One concern to being short at all is that a bounce just tested two prior lows as resistance (the knee-jerk reaction to Lehman’s news pre-open, and the post-open dip’s low), and maintained their recovery through 1:30. This suggests sellers don’t have traction. By the same token, overcoming this to print new lows could be bearish enough to extend even lower.

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