Pre-close View… Detour down?

No-bias trending is exacerbated by California headlines.

We discussed before Tuesday’s close that today would likely correct its late surge by dipping back down into yesterday’s range. That’s because the surge was sponsored by weak hands.

Today was never required to recover, at least not before the final hour. The afternoon’s no-bias environment took advantage of that extra window. It probed under its 2091.00 bias-down signal, fulfilling potential down to 2088.00.

Headlines along the way revealed what appears to be a terrorist incident in San Bernardino. That only exacerbated the decline’s trending, which has extended down to 2075.50. That’s where 3-minute RSI finally left oversold territory, while 1-minute RSI diverged positively. And that has bounced up to 2081.00.

Probing under 2091.00 was already sponsored by weak hands. The excess is in knee-jerk reaction to news headlines, which is the definition of weak hands. A recovery must at least retest 2091.00, if not also 2094.50 where the 1:20 no-bias signal triggered.

Meanwhile, having filled the gap back down to Monday’s 2082.00 close, closing today above 2088.00 would maintain the likelihood for extending higher tomorrow. Otherwise, tomorrow’s open must recovery 2095.00 to resume the rally without first dipping any deeper for any longer.