A further consolidation into midweek and into the FOMC announcement, still reluctant to build on the bounce last week through the 127-16 spike high, capped ahead of 127-28 to leaves bias for a roll back lower to the range, then a bearish extension.
Whilst minimally below 127-28, we see bias for a further bear extension in March, given the significant sell off since February through multiple chart and retrace supports.
A bearish outside pattern to start the week and the month and as we had expected a still more negative theme coming through, since the failure last week back from the 128-16 retrace/ chart resistance level.
Having rolled back into the rebound rage, this now leaves the bias for downside pressures resuming, given the aggressive February sell off through multiple chart and retrace supports and the bearish outside pattern rebound failure last Thursday (from ahead of 128-16).
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.
A dip and bounce Wednesday, then a rebound and stall Thursday, still holding support at 129-16/12, but capped by modest resistance at 130-20/23.
This leaves the market poised for a statement into the US Employment release, either for a re-energizing of bull pressures to retest the 131-055 peak or for a top and shift to a range theme below 128-235.