Market Wrap (recording & summary)

Thursday’s open didn’t gap up above 2442.00, despite having probed fresh highs overnight up to 2446.50. That didn’t prevent the morning from extending higher, but it made it difficult since Wednesday’s buyers had gained no traction. Anyway, a brief probe above Wednesday’s highs up to 2446.00 was reversed down sharply to 2439.00.

Retesting the overnight high intraday didn’t equate to resuming the rally, either. Or later piercing fresh highs.Not when every such probe fails to hold through the relevant timing window. Sound familiar? That behavior at lows is what led to this week’s rally.

2439.00 is an odd level to make a low. Perhaps that’s why its reaction was limited to retracing the overnight high, and holding it. There’s no requirement to retest 2439.00, but I’ll expect it if Friday’s open is not extending higher. Not only 2439.00, but probably 2435.50 if not also lower.

Extending higher is likely to begin by almost literally exploding higher. Whether or not gapping up, the two-day shallowly uptrending channel has been restraining optimism. And it’s in proximity to prior highs at 2451.50 and unfinished business above that at 2454.00. A new high close on a Friday would be bullish longer-term. Not holding an intraday probe of new highs would be bearish.

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

Monitor overnight Globex trading in the chaRTroom here.