Bias-down signaled, and more.

[pay]The bounce to ESm 1370’25 apparently took advantage of the relatively illiquid overnight environment to add a couple of points to its gain. But the effort still lived up to expectations by producing a running start for sellers to take another shot at breaking under overnight lows. Through the 10:15 bias window, S&Ps did manage to print a new relative low at 1361’50.

Unless the ESm 1365’75 bias-down signal were recovered through 10:30, a drop targeting 1352’50 is underway. And if that isn’t retraced by the close, then the break under recent lows around 1365’00 would signal momentum reversing down.

Meanwhile buyers are fighting to take traction away from sellers as S&Ps are still bouncing up to ESm 1365’00 with 10:30 just 10 minutes away. That wouldn’t equate to a buy signal, but it would at least delay the downleg.[/pay]