New low, new opportunity… forget the bias-down?

[pay]A last-minute dive to the ESu 1326’00 gave sellers an extra 10 minutes to prove their case. S&Ps continued dropping to new lows at 1320’75 that fulfilled the required retest of this morning’s low. A 3-point bounce from there has consolidated for nearly 30 minutes before probing the low by 2 ticks.

This is still 2 points above the afternoon’s 1318’00 bias-down target, but I would be more interested in being long back above 1323’00.

It is very dangerous to be on the wrong side of new lows Friday afternoon. The earlier a short-squeeze appears, the more likely it will be retraced entirely today or Monday. The longer no recovery becomes obvious, the more likely this downleg will extend down much further before its next chance at a short-squeeze.

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