Bias-up target met.

[pay]This morning’s bias-down signal started lapsing at 11:30. Despite retesting the ESu 1334’00 bias-down signal as support – probing it with a new low – the noon hour was entered back above the bias-down signal. This alone indicated that sellers had lost traction. Buyers exploited the setup and drove S&Ps back up to the 1343’00 bias-up target for its fifth test today.

Is it so amazing that buyers were able to squeeze in another round-trip? Or isn’t it less amazing the more often this is done? I am happy to accept that the lows have been probed sufficiently to allow a durable bottom to form. I am uncomfortable with the continued willingness of buyers to step in front of these probes of lower lows before more serious testing could be done. The recoveries are less amazing for that, as well.

But that wouldn’t inhibit me from being long above 1343’00 through any relevant timing window. My eyes would be wide-open to the possibility of the strength being only a momentary “head-fake.” That’s what a stop-and-reverse is for.

[/pay]