Bias-parameters

[pay]The repeated knocking at yesterday’s highs finally opened the door to a quick 3-point pop that touched this morning’s ESm 1400’00 bias-up signal. A 20-minute range is seeing its lower-end deteriorate, along with MACD & RSI, but not with any velocity. Back under 1397’50 would put into play at least a corrective drop targeting 1392’25. Any lower from there could have devastating effects. Regardless, it doesn’t seem that FOMC will be greeted from a defensive posture.[/pay]

[pay]S&Ps have ranged since the open almost exclusively between the ESm 1394’50 bias-up signal and yesterday afternoon’s 1397’25 high. Actually, each was briefly probed. Its the probe of yesterday’s high that concerns me because that doesn’t make things easier for the bias-up signal. So I suggest being extra cautious about a slightly higher high also reversing down quickly, or the bias-up signal being rejected through 10:30. If it’s the latter, then back under 1394’00 would target 1389’00 where a better bounce can form and later fulfill the bias-up signal.[/pay]

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[pay]The recovery continues from this morning’s low, and from consolidating around this morning’s ESm 1389’00 bias-down target. The open’s print at 1395’25 was just tested, still negative territory and also still under yesterday’s lows. That’s 50% of the way back to yesterday afternoon’s high, and 1400’00 remains targeted so long as pullbacks hold any brief test of 1393’75. A dip is currently testing it by a full point, so the rally needs new afternoon highs soon without much more delay. MACD & RSI are diverging negatively among only the shortest intervals, and volume is increasing as the recovery progresses, so buyers continue to get a benefit of the doubt – just not a lot of time.[/pay]

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