Market Wrap (recording & summary)

[Market Wrap was held 30 minutes early because I had to leave the screens for Tuesday’s last half-hour.]

North Korea’s actions served as an external catalyst to accomplish what the ongoing decline was already seeking to do organically. That pushed the decline’s sponsorship to the sidelines. Happily, since being strong-handed sellers, they prefer selling into strength. Which is what they got, since no more missiles meant no reinforcements to the knee-jerk reaction selling. [Click here for a video description of that analysis.]

So, the new question is when and where will strong-handed sellers start creeping back in? Filling the gap back up to Monday’s ~2443.50 close neutralized its attraction above. But it was attacked and tested so hesitatingly as to suggest it contained enough pessimism to fuel a bigger bounce. The next higher resistance at 2448.00.was tested intraday without closing above it. And the close wasn’t back under 2438.00, which would have signaled the bounce was done.

Wednesday can still extend through the 2454.00 upper-end of last Wednesday-Friday’s range to test 2461.00. And still qualify as a correction. But gapping down Wednesday under 2438.00 would invalidate by proxy Tuesday’s recovery. Fresh lows targeting 2411.75 and sub-2400.00 would be in-play — and probably no longer offering much support.

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

Monitor overnight Globex trading in the chaRTroom here.