Market Wrap

Attacking either end of the range again was likely to probe beyond it. The range’s upper-end was the lucky recipient of that attention, Its 1856.50 highs were broken on the way up to attacking 1864.00.

Lest that sound the decline’s all-clear, a late reaction down attacked 1844.00. Tuesday’s super-volatile session was super volatile into its last 20-point drop.

Gapping up Wednesday above Tuesday’s late high would target Friday’s higher prior lows around 1868.00, and probably higher to also test 1888.00. Otherwise, opening under 1840.00 could find the decline having resumed before Fed Chair Yellen clears her throat during her congressional testimony.

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

Monitor overnight Globex trading in the chaRTroom here.

The bias environment began lapsing by probing fresh session lows down to 1821.75. That was short-lived. Despite the position of weakness, the last hour rallied back up through the decline’s 1825.75 target to probe the open’s 1850.00 high up to 1855.00.

Not bad.

Its reaction down to 1844.00 barely began firming by the cash session close. But it was largely retraced after the close, attracted to retest the 1855.00 high whose RSIs were overbought.

Buyers didn’t gain traction for the late effort. So, extending higher Tuesday requires gapping up, preferably back above Friday’s 1866.00-1868.00 “higher prior lows.”

Regardless, it’s still not a durable bottom. And it’s for the same reason as the nearly three-week old 1805.00 low, which also magically recovered that afternoon from having substantially extended a deep gap down. Neither session represents capitulation

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

Monitor overnight Globex trading in the chaRTroom here.

Firming into and out of the close didn’t finish until touching 1877.00. This neutralizes the upside attraction back to Friday afternoon’s bias-down signal. Selling may resume without hesitation and extend lower without inhibition. Unless Friday’s pessimism is corrected or rejected since its sellers gained no traction for their efforts. We’ll discuss the bigger picture at this weekend’s Saturday Review — its link will be sent overnight.

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

PLEASE REPORT BACK TO ME IF YOU NOTICE ANY AUDIO/VIDEO ABNORMALITIES ON THE WRAP VIDEO.

Anxiousness often paralyzes the market on the afternoon prior to a monthly Employment Situation report. Thursday was no different, despite triggering the bias-up signal. Its bias-up target was tested twice before falling 15-16 points back down to the open. No sponsorship gained traction.

That included the decline back under the bias-up signal during a bias-up environment. Typically this is weak-handed sponsorship, since no traction will be gained for the effort. In fact, it was retraced entirely. That’s potentially bullish from a contrarian perspective, especially ahead of  weighty event like Friday’s pre-open report.

But the late-afternoon recovery only neutralized its attraction above. No prior high was recovered to reverse momentum up. Not recovering a break lower would likely extend back to Wednesday’s lows — and being a Friday, potentially much lower.

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

When the intraday room lapses, monitor overnight Globex trading in the chaRTroom here.

Oversold RSIs at Wednesday’s 1865.00 low require an eventual retest. Competing against that is the afternoon’s rally having gained traction. Unless inverted or otherwise invalidated, Thursday morning is likely to probe fresh highs before being vulnerable to resuming the decline.

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

When intraday access lapses, monitor overnight Globex trading in the chaRTroom here.