No-bias.

[pay]S&Ps bounced back above the ESm 1352’50 bias-down signal after probing the overnight lows, and held the recovery long enough to signal No-bias. Assuming this persists through 10:30, is unlikely to be attempted this morning. It also means that trending attempts would likely be retraced entirely.

What a great opportunity for a bull market to let the 1347’50 target be tested, while sellers would be unlikely to gain traction for a new downleg. And buyers could gain traction to possibly recover yesterday’s close under 1365’00, invalidating its sell signal. The reward for that accomplishment would be nothing short of a new upleg targeting at least 1410’00. And it would likely begin with a substantial rally this afternoon.

But first things, first. S&Ps are trying again to recover above yesterday’s cash session close, now within 1 point of this morning’s 1359’50 bias-up signal. Back under  1354’00-1356’00 would be tough, but it would also be a big step toward a more realistic probe of the lows, and a more meaningful recovery. Its delay would only make the eventual break more likely to resume the sell signal’s downleg.[/pay]