Market Wrap (recording & summary)

Gapping down Thursday under Wednesday afternoon’s ~2463.00 low formed a “session-long decline” setup, which was confirmed by extending down through the open. All but one timing window probed the prior timing window’s low, the exception being the afternoon bias environment. It completed a bounce from 2442.75 to 2453.75. The balance of the session melted down to 2435.75.

That’s 36 points under Wednesday’s 2471.75 close, and 53 points under Tuesday’s 2488.50 high.

Thursday was also a breakout close. Tuesday’s temporary surge had closed back under the range’s upper-end, and Wednesday’s break had ranged choppily around its lower-end. A second consecutive lower close Friday would confirm the breakout, and require an eventual third lower close. Not closing Friday back above 2459.50 would also require an eventual third lower close. That was the interim low under which Thursday’s close has formed a trend reversal setup.

The next lower objective is 2425.25, likely to be probed by at least 4 points. Any post-open weakness Friday would likely fulfill it intraday.  Or, Friday’s open may gap down under it and extend deeper into the weekend… and out of it. Of course, lower lows may be avoided altogether — albeit temporarily — by avoiding any post-open weakness.

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

Monitor overnight Globex trading in the chaRTroom here.