Mid-day Update… Bias-up, up and away.

Still rallying from this morning’s reversal.

This morning’s 2620.00 bias-down signal was tested down to 2612.25, and recovered in time to avoid triggering. That put into play an offsetting test of its 2638.25 bias-up signal. And it was tested before the first hour ended, when exceeding it would have renewed the bias-up. But it was still being overlapped.

The rally extended anyway.

If tested during the no-bias environment, the untriggered 2638.25 bias-up signal would be required to define the window’s upper-end, or else trending above it is required to be retraced. Both constraints could be invalidated if the rally’s sponsorship were to prove itself worthy — by exiting the bias environment above its 2646.00 bias-up target.

It was.

And having rejected the no-bias and its required retracement, the rally has only extended. The afternoon’s 2655.00 bias-up signal triggered and its 2662.00 bias-up target is being met now. The open’s shallow muted reaction to the Employment Situation report has leveraged yesterday afternoon’s pent-up pressure to extend sharply higher.

And now the bias-up target is being probed.

Welcome to Friday. Especially to Friday afternoon, and to the Friday Factors. Trending is difficult to start, and then difficult to stop. More to the point currently, exiting Friday afternoon’s bias environment above prior highs on a trending day is vulnerable to extending. Beware of reversal signals, or anticipate their reactions to be brief and/or shallow.