Not a bias-up… for now.

[pay]Relative to Friday’s range, the limited overnight range had already suggested volatility would be late coming into work this morning. Friday afternoon’s highs around ESu 1285’00 held a test as resistance and the 1276’00 bias-down signal held as support. S&Ps eventually levitated back up to the 1283’00 bias-up signal, but too late to trigger a rally.

I’m a little surprised that buyers didn’t take more control. S&Ps hovered just under Friday’s highs long enough to reflect pessimism, but a momentary probe higher was rejected by a 10-point drop. Now Friday’s highs are being retested as resistance, and stopping the rally here would still surprise me.

The only sticking point is timing. If buyers can be patient and slow-play their strength, chipping away at resistance until the no-bias environment begins to lapse, then the 1289’00 bias-up target would be an understatement. Rallying too soon would reflect impatient buyers, allow the buying pressure to be absorbed more easily.

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