Bias-parameters
Morning bias
Afternoon bias
Bias-up, up, and also away.
Higher attractions facilitate a blow-off surge.
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Pre-open reaction to Jobless Claims had extended overnight gains up to 1680.00. Dipping into the open bounced off of 1677.50 to extend the gains some more. The attraction up to yesterday’s 1680.50 was tested while attacking this morning’s 1682.50 bias-up target to within 1 tick.
Overbought RSIs helped to ensure an optimistic reaction to 10:00’s two econ reports and Bernanke’s remarks.
Also helping to ensure an optimistic reaction was at least one of 10:00’s two econ reports. I noted during this morning’s Market Tour that Philly Fed is the only regional survey with a track record for influencing price action. Its blow-out report this morning proves its relevance.
The 1682.50 bias-up target was exceeded through 10:15 to renew the bias-up signal. Its 1687.50 renewed bias-up target was met at 10:30.
Overbought RSIs at the high help to ensure that a reaction down will recover. Back under 1685.00 would trigger a reaction down targeting 1682.50 and potentially 1679.25.
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