Bias-down target met.

[pay]The afternoon’s 1241’50 bias-down target was met within minutes of signaling bias-down. A very brief hesitation there did have enough time for oversold 1-minute RSI to recover and then diverge positively when the bias-down target was retested. The 3-minute RSI didn’t leave any unfinished business. But there is room for bouncing up to 1244’75 before buyers gain traction for something more substantial like a test of 1251’00.

From the reaction off of 1268’00 back under 1263’00 before 10:30, we already knew that much larger selling pressure was coming down the pipeline. But I am continually amazed today at how much selling is accepting continually lower prices with tomorrow’s Employment Situation report just hours away. Normally the extended selling is excessive pessimism – this instead seems to be setting the stage for a very sour reaction that could see 1200’00 retested this week or Monday.

Normally price action becomes subdued in the afternoon prior to the Employment report. That’s from becoming paralyzed by anxiousness. This current environment isn’t dealing with anxiousness so well.

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