Market Wrap (recording & summary)

Tuesday’s open gapped up well above Monday’s 2427.50 highs to 2433.00. A probe up to 2436.00 was retraced during the morning’s bias environment back down to its 2429.25 bias-up signal. It recovered, and each remaining timing window trended up to higher and higher highs.

This pattern would be a “session-long rally” if Monday’s last trending had been down. But Monday’s late action rallied back to session highs. A gap down under Monday afternoon’s 2418.00 lows would have formed a “session-long decline,” and would have begun the process of ending the pullback from Friday morning’s 2443.50 high.

Regardless of the direction, Monday’s range was likely to produce a false breakout. Again, that temporary move down would have helped to form a better base for launching a rally. Instead, rallying first has been sponsored by weak hands, vulnerable to reversing down at any time upon retesting Friday’s high.

Avoiding a reversal down Wednesday morning could extend the rally to 2445.00 if not also to 2553.00. An overnight pullback has room down to 2433.00-2434.00 to maintain the rally’s momentum. Opening any lower could dip back into Monday’s range, where there would be no assurance of not simply extending down to Friday’s lows and lower.

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

Monitor overnight Globex trading in the chaRTroom here.