Market Wrap

Wednesday’s “inside day” was biased-upward, which often means that its buyers are weak-handed. They can still be productive, if only temporarily. But their rallies aren’t likely to gain traction.

Wednesday’s rally didn’t gain traction. The open’s test of 2466.75 resistance — the morning’s bias-up target — was probed in the afternoon, but held through the close. So, buyers accomplished little.

Gapping up Thursday and extending higher could serve by proxy as if Wednesday’s close were stronger. The ECB meeting is not an inappropriate catalyst. Catalysts can cut either way, and a negative reaction would be likelier to trend down.

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

Monitor overnight Globex trading in the chaRTroom here.

This Tuesday’s reaction to the latest N. Korea missile was decidedly different than last Tuesday. Post-open action didn’t rally, and overnight lows were probed. At least recovering to close back above the 2460.25-2461.25 overnight lows could have isolated intraday sellers, but they proved too strong-handed. And that was despite having trended up since exiting the noon hour off of 2445.50. An uptrend that nearly fulfilled an attraction to “higher prior lows” at 2461.00.

So, expending buying pressure all Tuesday afternoon, nearly fulfilled its potential, holding resistance without trapping any shorts. As suspected before the open, rallies would be inhibited. As suggested at the close, it’s not just weak hands that are inhibited.

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

Monitor overnight Globex trading in the chaRTroom here.

The last calculable corrective bounce limit was tested Friday. Pre-open, post-open, noon hour and late-afternoon. So many opportunities to extend higher, and none were exploited. No opportunities to trend back down were exploited either. But the close did dip back under 2477.00, so no higher objective is in-play.

In fact, a last-minute dip extended sharply down to 2474.00. And it had originated before coming within 3 minutes of the cash session close, making it valid. No upside traction gained, and no “unfinished business above,” with this week’s rally on the cusp of exceeding correction extremes.

Monday’s holiday is rarely accompanied by significant price action. I’ll still be available to comment on the chart if a situation were to develop.

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

SATURDAY REVIEW IS NOT HELD DURING HOLIDAY WEEKENDS. MARKET WRAP WAS EXTENDED TO REVIEW THE BIGGER PICTURE. CHARTROM WILL RE-OPEN NORMALLY WITH SUNDAY NIGHT’S GLOBEX SESSION… ENJOY THE HOLIDAY!

A lot of optimism has been expressed ahead of Friday’s Employment Situation report. Almost all the way through the close, but for a late reversal down.

The next higher objective above 2438.00, 2448.00 and 2454.00 was 2469.00. Its early test Thursday coincided with downtrending pivotal resistance, and their influence price down through the morning bias environment to the open’s 2463.50-2464.25 buy signal. Resistance had become support, still in positive territory, as the bias environment began lapsing.

Not breaking any lower would marginalize sellers for the day. Trending back up from 11:30 into noon would confirm. The rally resumed as the afternoon’s no-bias environment began lapsing, extending up to 2474.25. But rather than close above 2469.00 and put into play the next higher objective at 2477.00, a late reversal attacked 2468.00.While rallying to 2477.00 still wouldn’t be enough to disqualify this week’s rally as only temporary, the corrective rally label is getting thin. So, closing above 2469.00 and putting into play 2477.00 would have been only a formality before exceeding the corrective rally limits. Thursday’s close back at 2469.00 keeps the label intact.

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

Monitor overnight Globex trading in the chaRTroom here.

Wednesday’s opening test completed a bullish setup that all but required retesting the overnight high [view a video description of the setup here]. That was 15 points above the open’s low, and it still was only one of the session’s most impressive features. There was the relentless slope through the morning and into the afternoon bias environment. And there was also the two-hour narrow hovering at session highs.

Of course, relentless steep trending often reflects corrections. Durable trends contain consolidations, backing-and-filling, and generally refuel buyers. An extended tends to mean that the counter-party is granting an easement. Slightly higher highs testing 2461.00 is still a possibility, if not also 2469.00. Even 2477.00 could be touched before reversing down, all within the context of being only a temporary correction.

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

Monitor overnight Globex trading in the chaRTroom here.