No-bias rally.

[pay]The open’s drop back under 825’50 fulfilled its predictable target at 821’75, then extended down to 818’00. But sellers were robbed of their traction back above 819’75 and no trending took hold by either 10:15 or 10:30.

We’ll be resuming bias signals later this week, and this would be a “no-bias” environment: Trending is unlikely to be attempted, and trending attempts are likely to retraced entirely.

So, when S&Ps probed new session highs, it was a “no-bias rally.” The rally attempt was unlikely, but now the attempt is likely to be retraced entirely. This doesn’t preclude the rally from first attempting higher highs. The timing inhibits the attempt at all, and it also inhibits me from trying to ride it. My preference is to wait for a retracement deep enough to signal that momentum has reversed back down.

That is currently triggered back under 827’00, confirmed under 825’50 and/or through 11:30. If sellers haven’t reasserted themselves by then, we’ll start considering long-entry parameters above the market. But sellers will still get a benefit of the doubt for eventually regaining control to erase this morning’s gains.

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