Bias-up target met. Big base forming.

[pay]The recovery’s threat to gap open above yesterday’s high is now threatening to fall back under it. A 20-point rally probed the ESm 1333’00 bias-up target by 2 points, which has been the center of a 90-minute consolidation. MACD & RSI didn’t simultaneously deteriorate or diverge negatively until the actual high, which was itself a momentary spike up that retested the bias-up target’s first touch.

The overbought and deteriorating technicals might neutralize themselves without incident if S&Ps can continue to hover around session highs. I suspect that the 1328’00-1329’00 pullback limit will be tested as support regardless – regardless of whether the dip extends down to retest the 1326’25 bias-up signal.

By the way, the bias-up signal is now a bias-down signal since the bias-up target has been tested. That would surprise me, since the overnight low combined with yesterday’s mid-morning low have formed a sizable base capable of launching a sizable rally – which is being advertised by the overnight high, recovering for a deficit, no less.[/pay]