Mid-day Update… A refreshing pause?

No-bias, no-bias trending, and trapping weak-handed shorts.

The open’s test of the 2099.00 bias-down signal held, triggering no-bias at 10:15. An offsetting test of the 2106.75 bias-up signal was put into play — but not as a requirement, since it had been tested already at the open.

A bounce only tested 2105.00 before dipping back to the lows. And through them to the morning’s 2093.50 bias-down target. Being a no-bias environment, that was “no-bias trending,” requiring its retracement back up to the 2099.00 bias-down signal. Its attraction above has been neutralized. But not recovered.

Even if we knew with 100% certainty that this morning’s sellers were weak-handed, we would not be assured of when or where a recovery would begin. And we do know this morning’s sellers were weak-handed, holding the bias-down signal instead of triggering it, probing under it later and still recovering.

But we don’t know that with 100% certainty, or if the entrenched rally intends to rest on its laurels more deeply before recovering. Unless bias-up is triggered, lower lows may yet be probed.