Market Wrap (recording & summary)

Has the market evolved beyond Pavlov? It keeps gapping up — to the same area, mind you — and then reversing down. Not every day, but most days this week, and most days of the past two weeks. Oh, and the reversals down never extend. They’ve been contained by a series of higher lows with only two exceptions, one being a headline reaction.

Perhaps Pavlov is alive and well… in the Dow. Not the proverbial Dogs of the Dow, far from it. The average has been rallying relentless and substantially during the same period. Although NDX has been flat-to-lower (more flat than lower), the Dow’s outperformance isn’t exactly rotation out of risk. It’s more like becoming the risky index.

Meanwhile, S&Ps are ranging flat-to-higher (more flat than higher) just under the high. Extending down should have happened by new if a new high were going to be avoided. Immediately breaking lower could extend but I would be suspicious. At least some fresh high is likely regardless of the eventual resolution.

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

THERE IS NO SATURDAY REVIEW THIS WEEKEND.