Bias-up target met, its retest required.

[pay]The ESu 1271’00 bias-up target was exceeded by 2 ticks before dipping. Its test formed an “emotional extreme.” This and the overbought 3-minute RSI are two reasons for expecting the target’s retest, probably probing the original test’s high. Pullbacks should now reach into the 1266’00-1267’50 area before recovering for the high’s retest.

A deeper pullback could be disastrous. The optimism is already undermining the formation of a healthy, durable rally. But now that the bias-up target has been met, its 1265’00 bias-up signal would serve as a sell signal if its recovery isn’t maintained through the 10:15 window and “no-bias” is signaled.

[/pay]