Market Wrap

Tuesday’s close qualified as a hold-long. But I wouldn’t tolerate much of a pullback. The short-squeeze from 2091.00 up to 2103.00 eventually extended up to 2108.00, putting into play 2111.25 and higher. The 2115.00 and 2121.25-2122.00 areas could be met, too, all within the context of a temporary correction.

Temporary. Not so much because Tuesday’s drop bounced from 9 points short of the decline’s likely 2082.00 target. More so because of simultaneously oversold RSIs at the 2091.00 low requiring a retest. And that retest would be very vulnerable to extending down to 2082.00 — or its room for noise down to 2077.50.

Wednesday’s FOMC meeting may have a bullish influence, just for getting the event and the hawkish wording of its statement behind us. It’s too soon to gauge what impact Friday’s Employment Situation report may have.

Details and other markets coverage are discussed in the post-market Wrap recording here.

Monitor overnight Globex trading in the chaRTroom here.

Hay, made it through the entire day without a single spooky Halloween reference! Oh, wait. Darn…

Still hovering at the morning’s low without rejecting it suggests at least an obligatory break lower is coming. Having hovered there for so long without yet breaking, more than just an obligatory break may require a shallow bounce, first.

Details and other markets coverage are discussed in the post-market Wrap recording here.

Monitor overnight Globex trading in the chaRTroom here.

Friday put the “FBI” in Fibonacci…

Bad news for Hillary Clinton triggered a 23-point afternoon plunge. Its origin was a little premature, enough so that its recovery could have trapped shorts for being weak-handed, and formed a durable bottom. Trending down relentlessly into the close would have been another form of weak-haned sponsorship, but that was avoided, too.

Instead, the plunge was retraced by 61.8% which also tested Wednesday and Thursday’s “higher prior lows.” Both are natural corrective limits prior to resuming the breakout, and producing new lows. Being the fourth consecutive lower close makes lower lows likelier than a recovery, and dooms to failure an immediate recovery attempt.

Details and other markets coverage are discussed in the post-market Wrap recording here.

We’ll review the bigger picture and any stock chart analysis requests during this weekend’s Saturday Review, which begins at 9:30am ET. We skipped last week and will skip next week, so be sure to join us. Its link will be sent to you overnight.

The late-afternoon retest of this morning’s oversold RSIs at 2126.75 was itself accompanied by oversold RSIs. Any bounce was again doomed to failure, and fresh lows were likely to test this morning’s 2122.50 bias-down target. Ending the cash session above the morning’s lows at 2127.75 quickly broke lower to touch 2122.50 into the futures close.

AMZN’s earnings miss may have been the catalyst for the post-close break. That didn’t help alleviate any anxiousness ahead of GGOGL’s earnings, each having greeted earnings from positions of weakness. Individual company earnings rarely affect the broader market’s price trend, so the knee-jerk reaction is vulnerable to reversing back up Friday. Otherwise, lower lows could extend into the afternoon.

Details and other markets coverage are discussed in the post-market Wrap recording here.

Monitor overnight Globex trading in the chaRTroom here.

Wednesday’s last half-hour sat there stunned, ranging choppily around its 2132.50 bias-down signal and 2134.25 bias timing print. This was neither a reward nor a consequence to bouncing off of the 2127.25 afternoon low, which was no-bias trending. The only unfinished business is above at the morning’s 2140.00 high, and its test would likely extend significantly higher. Otherwise, probing under Wednesday afternoon’s low could trigger a domino effect that leads to probing under 2118.00 and lower.

Details and other markets coverage are discussed in the post-market Wrap recording here.

Monitor overnight Globex trading in the chaRTroom here.