No-bias signal being tested.

Positioning for an afternoon decline, or getting rid of ballast.

[pay]Probes above 1294.25 didn’t gain traction during the opening 15 minutes of volatility. Instead it pushed back down to 1290.50. A recovery touched 1294.25, but didn’t pierce it when piercing it would have gained traction.

1290.50 was revisited, probing the 1289.00 bias-down signal by 3 ticks. The bias-down signal can be tested during a no-bias environment without sellers gaining traction.

Traction can be gained by breaking lower as the bias environment lapses. For example, maintaining a break under 1289.00 through 11:30, or waiting until then to break lower.

Recovering 1291.00 through 11:30 might serve as a buy signal, assuming limited price action before then.

I still expect this afternoon to be extra trendy. Either sellers are getting an early start at retracing Monday’s gains, or shorts are being trapped to fuel a rally leg into the noon hour.

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