NO-BIAS, TESTED BIAS-UP SIGNAL

Overnight highs aren’t so much rejected, as not extending.

[pay]Overnight ranging around 1806.00 stopped ranging at the cash session’s opening tick. Price then began trending down, eventually touching 1802.25.

1802.25‘s ultimate support had been identified in the Chartroom after the open. Any lower would have signaled the opening dip was actually a reversal down. Its test reacted up to 1804.25.

Holding 1802.25‘s test does keep alive potential that selling pressure has been fully expended. The problem buyers now face is that the 1805.50 bias-up signal wasn’t recovered by 10:15. Perhaps selling pressure is fully expended, but buyers failed to exploit it. Now an offsetting test of the 1796.00 bias-down signal is in-play.

Recovering the 1805.50 bias-up signal through 10:30 would invalidate whatever was signaled by not yet recovering it at 10:15. Otherwise, recovering the 1805.50 through 11:30 would invalidate the no-bias, only if there were no fresh low under 1802.25.

Back above 1804.50 could get a benefit of the doubt for being able to invalidate the bias signal. But until 10:30 or 11:30, there would be no confirmation that a test of 1796.00 wasn’t still in-play.

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