Fulfilling the bias-down.

[pay]The 871’25 bias-up signal’s retest did hold, as did the 870’50 bounce limit after dipping back under 870’00. And the break under 870’00 went on to fulfill its 865’50 target which is being tested ahead of the noon hour.

A break maintained under 865’50 would put into play a retest of this morning’s 859’00 low. The retest is already required because the bounce originated during a bias-down environment. The extension into positive territory is a delay of this objective, for which the market should compensate with either a steeper or deeper decline.

If today’s close is under this morning’s low, after a gap down’s recovery into positive territory failed to hold, the resulting setup is a “pivot reversal” that points down without delay. Otherwise, thanks to the probe into positive territory, a close above 873’50 is the minimum requirement to signal the rally is extending substantially higher before resuming the decline.

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