Mid-day Update… Absorbed, but not invalidated?

Morning dip retraced.

Did this morning’s dip leave a lasting impression? Yesterday afternoon’s buyers gained traction, so they’re capable of absorbing a reaction down. In fact, the morning ended unchanged from yesterday’s close(s).

So, this morning’s drop was retraced entirely to unchanged. Did buyers absorb it? And since the 2349.75 bias-down triggered, is it now absorbed?

Tough call, but probably not. Still overlapping the bias-down signal at 10:30 prevented invalidating it. And despite being higher, the bias environment lapsing at 11:30 was still overlapping the open’s 2354.50 high. Higher still at noon, and still overlapping.

Bias-down triggered cleanly. But although it hasn’t since extended, neither has it been rejected cleanly. The 2344.75 bias-down target becomes “unfinished business below.” Another interim rally is possible, especially so long as 2352.75 holds as support. But back under 2349.75 could resume the morning’s decline.