Market Wrap

Chipping away at the 2135.50 support of “lower prior highs” suggests that even the most bullish scenario is likely to probe lower before recovering. Not necessarily, but the corollary is to be careful if buying a recovery that begins immediately.

“Unfinished business above” does make resolving up possible, if not also likely. A test of Tuesday morning’s 2148.00 bias-up signal was left outstanding but not invalidated. The open formed an anchor (again), making at least a probe above its 2145.75 high likely.

Tuesday was an odd session both for the powerful mixed signals it produced, and for them seemingly neutralizing each other’s influence. Forming a “session-long decline” setup without triggering it is as bullish as it tends to be bearish. But it wasn’t. Meanwhile, isolating the probe above Monday’s high to the overnight can be very bearish. Barely.

Opinions are always varied in the market. They’re not very polarized, not yet. But there seems to be much less patience than the current trading range suggests.

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

Monitor overnight Globex trading in the chaRTroom here.

Monday’s noon hour dip held last week’s “lower prior highs” down to 2140.50. Bouncing through the afternoon eventually recovered to touch the 2145.75 opening print. Trading there within 3 minutes of the close, after having probed intraday both above and below makes the breakout vulnerable to failure.

Monday’s close came after trending down intraday, so it wasn’t an optimal breakout of a multi-session range. One bearish open would form a “session-long decline” setup, after trending up into one close, and then gapping down back under the prior afternoon’s 2142.25 low. The vulnerability to reversing down dissipates if Tuesday’s open isn’t already behaving bearishly. Monday’s opening anchor setup still suggests the intraday pullback will recover and extend higher next targeting 2150.00.

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

Monitor overnight Globex trading in the chaRTroom here.

SPECIAL NOTE: Do you know your password? Another layer of security is being implemented before Monday’s open or else Monday night. Either way, you’ll be notified at that time with instructions in case you encounter difficulty.

There being no Saturday Review this weekend, we expanded the post-market Wrap to review the Bigger picture.

Watch the post-market Wrap recording
here in its usual weekday format
or here in its usual Saturday format.

chaRTroom will re-open Sunday night for Globex and a NEW LINK will be sent then.

Absorbing drops is potentially accumulation. And accumulation is potential. It is stored energy, just waiting for its cap to be flipped and its carbonation to explode upward. The cap begins being flipped by probing prior highs. But Thursday’s pattern is of lower highs. Rising lows, too — which only increases the carbonated pressure.

The nearest attractions of “unfinished business” is above, at 2141.50 and 2145.50. There’s also a likelihood of extending to 2050.00. WedEX missed its chance to entrench that upside Wednesday, and only hovered under resistance. Pessimistically short of resistance, which is potentially bullish from a contrarian perspective. But irrelevant until next week if expiration doesn’t exploit it.

NOTE: THERE IS NO SATURDAY REVIEW THIS WEEKEND DUE TO TRAVEL. PLEASE REQUEST CHART ANALYSIS INTRADAY IN THE CHARTROOM.

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

Monitor overnight Globex trading in the chaRTroom here.

Well, we made it through the Black Monday anniversary from 1987, without any hint of a crash, or any jokes about it. In fact, the session behaved as if a session-long rally, each timing window probing the prior timing window’s high, with only one exception. And that was the last window, perhaps inhibited either by pre-post-close earnings jitters (AXP, EBAY) or the evening’s “Presidential” debate.

“Unfinished business above” was left outstanding at the afternoon’s 2145.50 bias-up target. Testing it Wednesday would have been vulnerable to extending higher. Delaying its test until Thursday now makes it likely to extend higher. The next higher objective would be 2150.00.

WedEX didn’t exactly trigger. Fluctuating throughout the afternoon around prior highs (i.e. 2138.00-2139.75) persisted through the close. Gapping up Thursday could serve by proxy, if gapping up enough and maintained. Gapping down would have to be relatively substantial to be predictive. I suspect the resolution will be up, based on the continued pessimism or restrained optimism, either one being somewhat bullish from a contrarian perspective.

REMINDER: THE CHARTROOM LINK BELOW IS NEW, BUT THAT SHOULDN’T AFFECT YOUR LOGIN. PLEASE CONTACT ME IMMEDIATELY IF YOU EXPERIENCE ANY DIFFICULTY.

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

Monitor overnight Globex trading in the chaRTroom here.