Bias-parameters
Afternoon bias
Morning bias
Bouncing the bias-up bounce.
The 1340.00 jury is still out. And still arguing.
[pay]Resistance at 1343.25 produced a drop back to this afternoon’s 1340.00 bias-up signal as support. It was recovered entirely. Barely.
Probing 1343.25 by just 1 tick reacted down to fresh lows at 1338.00. And now the bias environment is being exited back under the 1340.00 bias-up signal to neutralize its target.
There is no unfinished business above. Big support at 1338.00 is producing a bounce. But buyers don’t gain traction without recovering 1342.50. Anything shallower would be refueling sellers.
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Afternoon bias
Timing of bias objective could invite sellers.
Poking the bear.
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The 1336.00 bias-down signal has been tested, fulfilling the no-bias objective. It has been probed back down to the 1334.75 overnight lows, as the muted Jobless Claims reaction predicted.
There is no bullish reason for retracing so much. Dropping much earlier would have allowed more time to recover into the bias environment’s exit. But it will start lapsing in 15 minutes, so this much selling pressure is difficult to absorb.
Regardless, this morning’s action suggests that yesterday’s bounce ultimately held a test of the range’s upper-end. Unless proved otherwise by the close, expiration’s influence could be very bearish – back to Tuesday’s lows, and potentially lower.
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