Bias-up target retested.

[pay]The ESm 1347’00 pullback limit launched a retest of the 1351’00 bias-up target by more than a 5-point margin, instead of breaking lower to trigger a sell signal. Since pullbacks originally needed to hold 1350’00 to maintain the rally’s momentum – and since that pullback limit failed to hold – this higher high is likely only a retest of the bias-up target. Back under 1352’00 would qualify as a sell signal.

The Fed’s Beige Book tends to shake things up, quite a bit, and it is due for release at 2:00pm ET today. If today’s rally is stretching buyers thinly, then you can imagine what sort of havoc the report might incite. But havoc cuts both ways. Without a sell signal, the bearish scenario would be limited to a temporary pullback, assuming the report didn’t trigger even more and steeper gains.[/pay]