Bias-up… invalidated

Bias-up signal triggered, barely, and then not for long.

[pay]A pre-open surge extended higher to neutralize yesterday’s 1838.00 “unfinished business above” on the way to 1840.00. Its reaction failed to recover 1839.50 through 9:45, suggesting that buyers had reached a stage of too enthusiastic to maintain their pace. And that suggested the bias-up signal wouldn’t trigger.

In addition to being yesterday’s unfinished business above, 1838.00 is also this morning’s bias-up signal, and it served repeatedly as support while ranging back up to 1839.50 through the 10:15 bias timing window. The 1838.00 bias-up signal wasn’t touched within 3 minutes either way of 10:15, so no grace period was invoked.

Bias-up triggered.

However, 1838.00 was touched to within 1 tick within 3 minutes of the bias timing window. And at 10:30 it was being tested, while the 1838.00-1839.50 range simply extended. Those weren’t huge grains of salt, just plentiful. And now fresh lows at 10:30 are extending to probe under 1837.00.

Bias-up is invalidated.

There is no requirement to test the bias-up target, or for an offsetting test of the bias-down signal. But today’s downside potential depended upon absorbing buyers early, and they were.

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