Bias-up target met.

[pay]A knee-jerk reaction to CPI recovered to new session highs which touched the ESu 1352’50 bias-up target. That was several minutes ago and more 3-1/2 points higher. The 3-min RSI was overbought at the peak, making its retest likely regardless of the interim pullback. The predictable move has now ended, except for the high’s likely retest, which could already be underway with the pullback having tested 1349’00.

Probes of the bias-up target are possible, but I am not expecting this move to extend higher. S&Ps could still be ranging in this area or already pulling back, perhaps in reaction to the next econ report due at 10:00. Regardless of whether this pattern is forming a durable bottom or preparing for a steeper downleg, a retest of this week’s lows remains likely. A long-entry above the bias-up target would require confidence that 1355’00 is being broken.

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