Bias-down target met, and the plot thickens…

[pay]S&Ps continued sliding to and through the ESm 1311’25 bias-down target, reaching 1309’50. One hour of ranging around the target was long enough for MACD & RSI to begin improving, eventually diverging positively. That wasn’t much basing, but it has nonetheless produced a retracement back up to and through Friday’s close, reaching 1320’75.

The overnight low is a “new Globex trend extreme” that will require being retested during regular trading hours – not necessarily today, but usually. Leaving it outstanding, in order to rally first, would be in-line with the expectation for any retest of last week’s highs to precede a new downleg to new lows for the year. Retesting the overnight low first would be vulnerable to sellers gaining traction for producing that new downleg without delay.

Regardless, this upleg can peak here around 1320’00, and probably should if the lows are going to be retested today.[/pay]