Bias-down target met… and others, too.

[pay]Plummeting prices ahead of the cash session open and through it, falling eventually to ESm 1340’00. My two ultimate targets for this downleg have been 1340’00-1342’00, and then 1335’00. A bounce back up to this morning’s 1346’00 bias-down target just produced a retest of the first target, where MACD & RSI have improved sufficiently to predict that this morning’s low is now forming.

The timing is very interesting because of this afternoon’s looming Beige Book at 2:00. A substantial bottom could form if a test of the 1335’00 target can be accomplished somewhere in the process of anticipation or reaction. Perhaps a bounce up to 1349’00-1350’00 where a pessimistic knee-jerk reaction could create a thoroughly petrified environment – while actually holding a retest of this morning’s low and fulfilling my lower target. Or, extending this downleg to my lower target into and/or out of the news.

Regardless of their order or other permutations, the market does have a marvelous opportunity to end this downleg that was first signaled at May 19’s highs. The problem, as with all steep drops into bottoms, is their resemblance to downlegs that are extending into “crashes.” The opportunity to bottom has not yet been accepted by the market, and might not be.

[/pay]