Market Wrap (recording & summary)

Retesting 2426.50 was likely to at least visit 2424.25, which previously had been the room for noise above 2415.00. It was fulfilled by a 5-point plunge during the noon hour from 2429.00. And its test reacted up quickly and aggressively. It also reacted up substantially, almost 10 points to touch the open’s 2433.75 high.

Before this week’s pullback had even begun, during the weekend’s Saturday Review, we discussed the potential down to 2421.50. Its test would have made a more reliable bottom. And still could, but it’s not necessary to resume the rally. No more necessary than was last week’s bottom pullback that stopped short of its 2399.00 potential.

Meanwhile, closing above Wednesday morning’s gap up after probing a fresh trend low intraday would have formed a Pivot Reversal. The setup identifies turning points. All of the setup’s other elements had formed, including actually probing a fresh session high up to 2435.00. But the close was back under he morning’s 2434.50 high. The pattern’s resolution can be as bearish as it could have been bullish.

Wednesday’s late reaction down seemed to suggest as much, retracing a couple of “big, consecutive upbars.” The setup would have triggered a short-squeeze if appearing several minutes earlier. It didn’t, so retracing it isn’t necessarily bearish. Rallying overnight to gap up Thursday can’t be discounted. Otherwise, gapping down Thursday under Wednesday afternoon’s ~2428.00 low could get 2421.50 done, after all.

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

Monitor overnight Globex trading in the chaRTroom here.