Bias-down target met. Holding?

[pay]S&Ps never recovered above ESu 1323’00 to trigger a long-entry parameter. The 1318’00 bias-down target was tested instead, and new lows probed it by nearly 3 points. Buyers have now failed to convert two consecutive positive divergence in MACD & RSI.

That track record isn’t stopping another recovery attempt that just surged to 1320’00 to signal that sellers had lost traction. If sellers aren’t in control, then dips should hold any test of 1317’00 as support. And a short-squeeze should be triggered if 1320’00 is exceeded.

Just within the context of being noise, not resuming the decline today should allow S&Ps to test 1323’00. A short squeeze could test 1325’00. But under 1317’00 would have potential for extending the decline by falling sharply into the close, and then probably down much further at Monday’s open.

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