Bias-up on hold… Bias-down still a no-show.

This morning’s bias-up environment has lapsed, intact.

[pay]The noon hour was entered while still testing the 1094.00 bias-up signal as support. This morning’s bias-up environment lapsed the same way.

The big 10-11 point tumble was a lot of selling, but it remained within the bias-up parameters. The gap back to yesterday’s cash session and futures closes were essentially filled, but positive territory wasn’t abandoned. So, similar to yesterday morning’s rally, a lot of selling pressure has been expended without damaging the chart.

The selling seems convincing because it fits the bearish scenario of the past week-plus rally being a corrective bounce, which is only retesting the range’s upper-end. It seems convincing because that retest was fulfilled just moments before the drop. And it seems convincing because the drop was so big.

If the bearish scenario is in-play, then this afternoon should be very ugly. If this afternoon doesn’t improve this morning’s gains, then tomorrow could be very ugly. But a sell signal that the trend is reversing down doesn’t trigger from positive territory. Until then, the burden of proof is on sellers.

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