Supply/Demand lines and trendlines and trend channels all have the same purpose: to inform you of the balance between supply and demand while providing clues as to future direction. Don't get so entangled in lines that you forget this. If it all becomes confusing, just get rid of them and look at price. Naked.
Generally speaking, you are correct that an oversold condition would prompt a bullish expectation ("bias" is a little strong). And that turned out to be the case this morning. However, since price never made it to the top of the channel you've drawn, there was always the possibility of a trend change, either sideways or a reversal. And sideways is what you eventually got.
But be careful not to micromanage. You can go nuts with ever tinier channels until you are reduced to complete inaction. Remember that the LOLR is still up. This is not to say that you blindly go long only, much less that you never take a short opportunity. But back off from the trees periodically, either by clicking into a larger bar interval or by zooming out. Keep the big picture in mind by taking a minute to look at the weekly chart again, then the daily, then the hourly. Then look at what's been going on overnight using the 15m or whatever. This will give you a sense of what the overall trend is as well as your place in it. Then you'll have a better idea what to do as you get closer to the NY open (unless you enter before that).
And for Christ's sake don't trade while you've got the flu.
Edit: I just checked the charts again to see what price had been up to since the NY close, and the LOLR isn't up anymore, at least for now. We'll see what the situation is in the morning. Perhaps buyers will pull it out after all.
