Market Wrap (recording & summary)

Tuesday’s second consecutive failed gap up held a test of its bias-up signal, putting into play an offsetting test of its bias-down signal. Monday’s similar setup had quickly extended down to neutralize the attraction, and bottomed before the bias environment was within view of lapsing. Tuesday’s instance left the objective outstanding (at 2465.00) and printed a later low as the bias environment began lapsing at 11:30.

It’s not a small difference, leaving unfinished business outstanding. It helps one day’s accumulation or distribution survive overnight. And so long as the intraday action didn’t trend away, price is still in the objective’s orbit and likely to fulfill it.

In Tuesday’s case, the narrow afternoon range makes the next leg likely to compensate for its delay. So, trending down to 2468.00 would likely be steep, and potentially deeper than the objective. If the narrow range was due to inhibition ahead of AAPL’s post-close earnings — which reacted up sharply, despite greeting the news from a position of weakness — then resolving up should begin by gapping up sharply.

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

Monitor overnight Globex trading in the chaRTroom here.