NO-BIAS, TESTED BIAS-UP SIGNAL

Pre-open surge is rejected. But the rejection might be rejected, too.

[pay]The overnight rally improved through the open to 1799.50. Touching it before 9:45 required exceeding it through 9:45 for the 1796.50 bias-up signal to be likely to trigger at 10:15. RSIs were diverging negatively into its test, enabling its reaction down to 1792.50.

Along the way, the 1796.50 bias-up signal was rejected through 10:15 to trigger no-bias. Rejecting a test of one bias signal through 10:15 puts into play an offsetting test of the other bias signal. So, a test of the 1789.50 bias-down signal is targeted.

It almost wasn’t.

A 4-1/2 point reaction up from 1792.50 is testing the 1796.50 bias-up signal. Its recovery through 10:30 would have invalidated anything already signaled by its rejection through 10:15. It wasn’t recovered through 10:30, albeit only by a 3-tick margin — which is not a recovery.

The no-bias and its 1789.50 objective get every benefit of the doubt. Back under 1794.50 would signal its test was back in-play. Exiting the bias environment at 11:30 back above 1796.50 would be the next opportunity to assume that sellers are neutralized.

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