Mid-day Update… Way to go, Dallas!

Trump picks up Yellen’s slack to trigger surge.

Great scene in Hunt for Red October, when it is saved from guided torpedoes by submarine Dallas attracting them away. President Trump played a similar role this morning by touting massive tax cuts, after Yellen’s comments fell flat as was expected.

The 2336.50 bias-up signal had been attacked, but not touched before reacting down to 2333.00. No-bias triggered, but no downside was required, and sellers weren’t gaining control. This increased the potential for no-bias trending, targeting at least the 2340.00 overnight high. A probe higher did begin, and extended to touch 2343.00.

No-bias trending requires a retest of the un-triggered bias signal. Plunging into the bias environment exit came within 2 ticks of the morning’s 2336.50 bias-up signal. Its attraction below is now neutralized. It was quite a novelty — and perhaps foretelling — having “unfinished business below” for a change.

Overbought RSIs at the 2343.00 high still require a retest, which is being threatened now. The 2342.25 bias-up signal held two tests to avoid triggering. So, probing any higher could also be no-bias trending, and it would also be doomed to failure. Back under 2338.00 at any time would point back down.