Bias-up target holds two major tests.

Pre-open strength bites off a little more than it can chew.

[pay]A dip into the open was recovered quickly back above the 1316.25 bias-up signal. The recovery extended higher just as quickly to test the 1322.50 bias-up target. The target wasn’t exceeded through 10:15, so the bias-up signal was not renewed.

A retest of 1322.50 probed a fresh high that was rejected by 10:30. The reaction down just touched 1315.00.

The 1316.25 bias-up signal should hold any test as support during the bias-up environment. This is not a requirement, having fulfilled the bias-up target, but extending down would be among the rare exceptions.

Towards that end, 1-minute RSI is oversold at 1315.00. It’s not a buy signal, but it does make it more difficult to extend further down this morning. By the same token, it makes extending down this morning that much more bearish.

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