Bias-down target met… long-entry?

[pay]After eventually firming overnight to test the ESu 1285’75 bias-up signal, S&Ps fell steadily until testing the 1278’00 bias-down target. MACD & RSI just moments ago diverged positively on the target’s retest, both on a 1-minute and 3-minute basis.

Long-entry parameters range from fading this low, to recovering the 1279’50 interim high (between the target’s test and retest), or recovering 1281’00 which would signal that the overnight drop had reversed up. A relatively shallow pullback was expected before extending yesterday’s rally higher, but a relatively tight stop on any long position would still be advisable.

I will speak to the implications of this pullback during the Morning Market Tour at 8:45 in the charting room. The pattern described above is annotated there now.

[/pay]