Pre-close View… Done, or done?

Intraday recovery retraced. But, what about reversed?

Perhaps it was nervousness over a fire at a Dubai hotel’s New Year’s celebration that triggered terrorism concerns. It also triggered a 14-point slide that retraced much of this morning’s 18-point rally from the 2039.00 renewed bias-down target up to almost 2055.00.

But was that just a knee-jerk reaction to the news? A later explosion nearby is probably responsible for producing fresh lows — under 2040.25 to 2039.00. Was that just a knee-jerk reaction, too?

Probably. Sellers didn’t gain traction when they could have. Despite exiting the bias environment under the noon hour lows, the final hour wasn’t entered any lower. And that was despite having probed lower in the interim.

Still, another lower low would be credible for extending down to fresh session lows. Oversold RSIs at the 2037.00 low require an eventual retest, and it’s too late for counter-trend sponsorship. But back above 2043.50 would signal instead that the rubber band had stretched too far, and too late, and was snapping back up into the close.