We stated in our last report to our clients that "the roll back lower Monday leaves a consolidation bias for Tuesday and maybe into midweek and the FOMC" and we do anticipate an erratic digestion theme into Wednesday, pre-Fed.
However, whilst minimally above 128-185, we still see a bullish bias through late April into May from the strong rally from March and the mid-April rebound from above the key support at 128-055/025.
Despite the bounce effort Tuesday above the firm barriers at 128-14/19, to ease immediate negative pressures,, we stated in our last report that "whilst below 129-035, however, a shift back to a neutral range theme is avoided ".
The stall ahead of 129-035 sees bias for downside pressures resuming, given the aggressive February sell off below multiple chart and retrace supports.
Despite a bounce effort Monday, an inside pattern contained below the peak at 128-08 from the rebound last week (post FOMC Minutes) and we restate that "whilst minimally capped below barriers at 128-14/19, we see negative pressures intact".
The aggressive sell off last week below 127-16 retrace support from November 2014 leaves the down trend intact for latter February.