When is a bias-down not a bias-down?

Bias environment exit trying to invalidate its signal.

[pay]1297.00‘s last test as resistance launched a 3-point drop. Now 1297.00 is being retested up to 1299.75. Quickly falling back under 1297.00 would trigger another drop, probably much bigger.

Timing is making that difficult. The bias environment has started lapsing. Recovering the bias-down signal would invalidate any targets it had put into play.

Regardless, the last dip to 1293.75 was too shallow to be a durable low. Breaking under 1297.00 well before noon would get every benefit of the doubt for resuming the drop, confirmed under 1296.00.

Another downleg wouldn’t be very credible if it waited until much closer to noon before even attacking 1297.00. Then it would more likely hold any test as support, perhaps down to 1296.00.

Entering the noon hour above 1297.00  would not only invalidate lower targets, but also re-open the door to new highs 10 points higher. This morning’s drop would be only a warning shot across the bow, still likely to be resumed.

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