No-bias trending retraced.

[pay]S&Ps dropped back into the 1221’50 lows where this morning’s original buy signal was triggered. Technicals were improved somewhat, at least enough when considering the drop itself was No-bias trending that required its complete retracement. The 1232’00 origin of the No-bias decline was recovered, leaving no unfinished business.

This leaves a market that is essentially at equilibrium. As if a pendulum at rest, the first swing in one direction is almost sure to be followed by a wider swing the other way. Price action leading into the noon hour suggests that first swing will be higher.

If 1238’00 is attacked but not exceeded, then the next swing down would target 1218’00 either today or tomorrow. The market is also capable of simply ranging sideways today, absorbing the pre-open and mid-morning recoveries, moving in frustrating starts and stops.

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