Ineffectual bias-up.

[pay]This morning’s bias-up signal wasn’t confirmed by extending above the first of two overnight highs at ESm 1402’50 through 10:30. It was later touched, but that was too late, and it has only produced a reaction down to 1397’00. Now this morning’s bias signal is starting to lapse.

The overnight highs still haven’t proved themselves to be more than just noise or fluctuation around Friday’s high, so their retests aren’t required. Meanwhile the overnight low hasn’t been touched – this isn’t required, and the post-open dip into negative territory can suffice. Not resuming the rally does give sellers a chance to gain traction, and could actually keep the market from reacting to this morning’s bias-up.

This afternoon’s bias-down signal might be 1395’00, 1 point higher than this morning’s signal. The bias-up should be either 1402’50 or 1404’00.[/pay]