Bias-parameters
When is no-bias not no-bias?
[pay]S&Ps recovered above ESm 1416’00 by 10:15 to signal sellers losing traction, and then above 1417’25 through 10:30 to signal buyers gaining traction. S&Ps have added at least 3 points more since then. That’s still far from being a bias-up. Speaking of which…
Having held a test of the 1414’25 bias-down signal on the way to triggering the no-bias signal at 10:15, this setup puts into play a test of the 1421’25 bias-up signal. Pullbacks should now hold any brief test of 1418’00 as support, preferably no lower than 1417’25.[/pay]
Morning bias
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| WED morning signal (triggered at 10:15 ) | SPX | ES |
| Bias-up: above | 1420.25 | 1421’25 |
| …would target | 1426 | 1427’00 |
| Bias-down: under | 1413.25 | 1414’25 |
| …would target | 1405.75 | 1406’75 |
| Signal status: No-bias, tested bias-down signal | FAQ | |
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Afternoon bias
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| TUE afternoon signal (triggered at 1:20 ET) | SPX | ES |
| Bias-up: above | 1409.50 | 1410’50 |
| …would target | 1416 | 1417’00 |
| Bias-down: under | 1404 | 1405’00 |
| …would target | 1398 | 1399’00 |
| Signal status: Bias-up target met | FAQ | |
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Bias-down target met.
[pay]The cash session open eventually dropped to lower lows at the ESm 1397’00 bias-down target. MACD & RSI diverged positively among several intervals to signal that sellers were losing traction. Back above 1400’00 would signal buyers gaining traction for a bounce to within 1-2 ticks of 1405’75. That’s this morning’s bias-down signal, and unless it is recovered through 10:15-10:30, the balance of the morning would likely range sideways in negative territory. Not recovering 1400’00 through 10:15-10:30 would leave the market vulnerable to a session-long decline.[/pay]
Morning bias
[pay]
| TUE morning signal (triggered at 10:15 ET) | SPX | ES |
| Bias-up: above | 1410’50 | |
| …would target | 1415’00 | |
| Bias-down: under | 1405’75 | |
| …would target | 1397’00 | |
| Signal status: Bias-down target met | FAQ | |
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