Bias-down target met. But wait, there’s more…

[pay]A late break under the ESu 1279’50 bias-down signal quickly dropped to its 1275’50 target, where S&Ps ranged sideways through the 1:20 timing window. Obviously buyers are not in control, and that was a big part of the bullish potential: that yesterday’s selling had overdone things, and that a gentle push upward this morning would entice some of yesterday’s sellers to buy back in before the weekend.

Now the closest thing to a buy setup would be to recover back above 1277’25 after a brief retest of the 1275’50 low (its retest is required because 3-min RSI was oversold at the low). Back above 1280’00 would confirm that momentum had reversed up, opening the door once again to an afternoon short-squeeze.

But I cannot stress enough my disappointment in buyers for not exploiting this morning’s firm open. Admittedly, the setup could go either way, coinciding with a steep decline and impending weekend illiquidity – indeed, this is why today is likely to gain a lot of ground, or else lose a lot. So I wouldn’t give long positions much time or room to perform, and would be a seller under 1274’50 with a stop-and-reverse to long above 1277’50.

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