Bias-up target met.

[pay]Selling before the Employment report took S&Ps down to new lows at ESu 1259’75 before recovering back to the 1263’50 area. The knee-jerk reactions – there were two – ranged 9 points between 1260’50-1269’50. Eventually S&Ps climbed higher to probe the 1271’00 bias-up target by 2 ticks where the 3-min RSI became overbought to indicate that any pullback would be recovered.

In fact, a 6-point dip from there has been recovered and probed up to 1272’50. Now RSI is not overbought, creating a negative divergence. Additionally, the interim consolidation between the highs was sloped upward. This tends to reflect too much optimism for the high’s retest to extend up.

This potential bearishness must still be triggered by retracing back under 1269’25. Otherwise the next higher target is 1277’00.

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