Mid-day Update… Reset?

A new downleg may be forming after all.

This morning’s extended bias-down target at 2065.25 was met, and held. Its reaction up tested the 2076.50 bias-down signal as resistance. Choppy action ensued as Fed Chair Yellen testified to Congress.

Then the testimony ended.

Trending could hardly wait to resume. And it resumed the earlier trend. Fresh lows were tested down to 2057.00, which is now being retested during a wider consolidation. The consolidation is ranging around this afternoon’s 2060.00 bias-down target.

This is below the overnight reaction to Turkey’s shoot down of the Russian fighter jet.

Had this morning’s renewed bias-down been renewed again under 2065.25, then its objective was 14 points lower at 2051.00. A noon hour fresh low could be shallower and still recover. But the noon hour is lapsing, without rejecting its fresh lows. The next lower objective is 2051.00.

The 2060.00 bias-down target can be recovered by 1:20 to avoid renewing the bias-down signal. But it would still be a bias-down environment, and vulnerable to testing 2051.00. Exiting the bias environment back above the 2066.00 area would be the next opportunity for a credible rally.