Bias-up target met.

[pay]The recovery back to yesterday’s highs left S&Ps in good position for responding favorably to PPI data at 8:30. A spike up probed the ESu 1371’0 bias-up target by 1 point, where a reaction touched yesterday’s 1367’50 high. RSI on a 3-minute chart was overbought at the peak, which was also a “new Globex trend extreme,” making its retest likely.

The retest’s first attempt peaked upon retesting the 1371’00 bias-up target, and now the cash session open is retesting 1367’50 as support. That’s not low enough. I want to see something on the order of 1364’00, and then back above 1367’00 would signal a retest underway of the pre-open highs, probably targeting at least 1373’50.

Whether or not the pre-open high is retested before a deeper pullback, its retest should provide a short-entry opportunity, and possibly a substantial peak. But I’m not ready to make that call until seeing signs that the excessive optimism is unwinding.

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