Bias-down target met.

[pay]The selling didn’t start until well after midnight, but made up for lost time. The retracement back to Monday’s close took one character as S&Ps dropped 7 points in 3 hours, from ESu 1286’50 down to the 1279’00 bias-down signal. Then price action became distinguished by a suddenly steeper rate of descent. Another 13 points was shed during  the next 90 minutes, probing the 1269’00 bias-down target by more than 3 points.

The past 90 minutes have ranged nearly 5 points, and just threatened to resume the decline. But a brief plunge from the range’s upper-end stopped short of even touching the lows, which is a little too much optimism to believe a low is forming.

Back under 1266’25 would signal the decline has already resumed, probably targeting the 1257’00 area. Otherwise, there is room for a bounce back up to 1273’00 first, although it wouldn’t be signaled before recovering 1270’00.

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