No-bias trending cuts both ways.

[pay]Two tests of 1231’25 were absorbed easily while the No-bias environment was still in-play. Inappropriate timing doesn’t go unpunished, so S&Ps surged 10 points to test the overnight high. The surge’s timing was also inappropriate, so it will need to be retraced no matter how high or for how long it extends first.

The last hour hasn’t even started, so buyers are risking expending their energy. The late-afternoon breakout is a call to action that requires trending in one way or the other. Sellers have “first right of refusal” to reverse the breakout. If they balk, buyers are next in line, no matter what the consequences.

Indeed, S&Ps added several more points to touch 1244’00 despite MACD & RSI diverging negatively. The rally could extend higher still, despite its No-bias origin. Its momentum remains intact so long as 1239’50 holds as support. Any lower might be an attractive sell signal for aggressive traders, confirmed under 1237’00, targeting at least 1227’50.

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