Pre-close view… Head-fake, or shoulder shrug?

Huge morning recovery retraced by 61.8%, and shrinking.

Rallying out of the open”s spike down to 1831.00 had probed back above 1900.00 inside of 10 minutes. That was extended by 61.8% to into the noon hour”s 1950.00 highs.

I asked earlier whether that was just a head-fake, and now 1876.00 is being tested. That”s a 61.8% retracement of the recovery, which is normal. But that”s not yet a head-fake. The decline could probe under 1859.00 and still not prove it isn”t just a temporary correction.

That said, sellers did gain traction for their effort. No matter what may happen before the close, nothing will change that the bias environment was exited under the noon hour”s low and the final hour was entered under the bias environment”s low.

Their reward is to trend under this afternoon”s lows, for an entire timing window. The balance of the session need not trend down, but the head-fake keeps that door open.