Bias-down target met overnight.

[pay]I had interpreted Friday’s delayed drop from ESm 1405’00 as being the product of optimism. The Globex open’s drop extended down to eventually test the 1391’50 bias-down target, so it is clear that Friday’s market was overly-optimistic. What’s really interesting about this drop is that Crude Oil is also off, attacking last week’s lows.

Currently S&Ps are bouncing off the bias-down target, with room up to 1395’00 as simply noise. Any higher, longer than momentarily, would signal a bigger bounce underway – at least back to this morning’s 1397’00 bias-down signal. That could be the stop for shorting a test of the bounce limit, but the timing isn’t ideal ideal so close to the open when the bias-down target has already been met. I am not expecting a recovery, but back under the bias-down target would be more compelling at this moment.

PROGRAMMING NOTE: The weekly updates to Other Markets (Gold, Crude Oil, Bonds) were published overnight. My understanding is that not everyone received these as Email Alerts, while others received them 15 times or so. My apologies to you all for whichever inconvenience was yours. The emails have been stopped, and the posts are available on the blog.[/pay]