Market Wrap (recording & summary)

Tuesday’s open tested and held relevant support through a relevant timing window. That relevant level was the morning’s bias-down signal. Consequently, an offsetting test of the bias-up signal was put into play. And it was on the way to being tested when political headlines triggered a plunge.

Knee-jerk reactions to headlines are sponsored by weak hands. And their reactions are doomed to failure. Even if strong-handed opinion shares the same direction, they’ll step back so that weak hands can trap themselves, and then reverse the trend. Tuesday morning’s plunge didn’t require being recovered the same day, but that didn’t stop it.

The offsetting test of the morning’s bias-up signal was neutralized, too, being attacked to within 3 ticks. Momentum didn’t reverse back down, keeping the door open to fresh highs for the week — unless Tuesday’s low is broken through the close.

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

Monitor overnight Globex trading in the chaRTroom here.