Market Wrap (recording & summary)

It’s difficult for a river to rise higher than its source. Friday afternoon’s narrowing range tried at Sunday night’s open, rallying 5 points to attack Friday morning’s 2477.75 high. But it was retraced overnight, too. Monday morning held at unchanged, and the afternoon eked its way back up to the overnight highs.

All within a 4-point range. At least we were able to label it a “dry cleaners” morning, and to suggest more of the same (i.e. little of anything) that afternoon. The final hour’s entry wasn’t doing anything relevant, other than holding up at session highs. The proximity allowed an otherwise irrelevant blip-up to pierce 2478.00, which was being tested into the close.

Breaking free Tuesday from the range of failed gaps up could begin by trending up overnight. That would be just as vulnerable to another failure, however temporary. Starting from a narrow overnight range would be more capable of trending up intraday. But an opening dip — not too deep — could stretch the rubber band for a post-open surge. Only gapping down under Monday’s 2473.00 lows would be likely to trend down intraday.

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

Monitor overnight Globex trading in the chaRTroom here.