Bias-down target met.

[pay]The open’s gap down never generated any buying interest to produce any sort of meaningful bounce. That’s not at all bullish, since the open’s gap from one end of a trading range to the lower-end (Friday’s highs to Friday’s lows) expended a lot of selling pressure. That means the gap down attracted more sellers than were satisfied.

S&Ps broke lower to probe the ESu 1278’75 bias-down target by 2 points. This is still above last Tuesday and Wednesday’s highs, but that doesn’t mean we won’t know earlier that their ranges will be probed. This morning’s low is under Thursday afternoon’s highs, and the momentum of this morning’s gap down remains intact so long as Thursday afternoon’s highs aren’t recovered.

Thursday’s highs are 1281’00-1282’00, which is likely to at least be tested if 1279’25 is recovered. Otherwise, under 1279’25 keeps the drop’s momentum alive, next targeting the gap back to Thursday’s 1275’25 close, and then back into Tuesday and Wednesday’s range down to 1267’25.
[/pay]