noN-bias at the bias-down signal.

Testing of bias-down signal held, didn’t hold, and then did neither.

[pay]The overnight recovery had probed this morning’s 1775.50 bias-up signal by 2 points. But a pre-open 6-point slide fell back to 1770.75. Its reaction up into the open came within 3 ticks of 1775.50, and then slid 7 points to touch this morning’s 1767.75 bias-down signal.

That’s a lot of volatility. But, wait, there’s more…

A bounce had retraced back down to the 1767.75 bias-down signal in time to invoke the grace period. And then, despite extending down to 1765.50 — yesterday’s noon hour low — a bounce back up to 1770.00 has prevented triggering a late bias-down.

When it mattered at 10:30, that bounce back up to 1770.00 was still testing the 1767.75 bias-down signal. This is not a bias-down environment, nor is it a no-bias environment. The bias-down target isn’t in-play, and neither is an offsetting test of the bias-up signal. The bias parameters are not influential this morning.

I’m expecting the current bounce to at least touch 1770.75. Resistance above it could be challenged at 1772.75 and 1774.25. But I’m not yet counting out sellers from regaining control when the bias environment begins lapsing at 11:30, or going into the noon hour. The bounce from touching yesterday’s low seems obligatory.

If that isn’t obvious by then, buyers and sellers both could be marginalized for the day, with narrow ranging into the close.

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