Market Wrap (recording & summary)

Wednesday’s early probe of fresh highs and its reaction down had fulfilled that much of the bearish template, the same bearish template that could have applied Tuesday. Anyway, the open’s spike up also fulfilled the obligatory probe of fresh highs that had become obligatory by having hovered pessimistically short of piercing prior highs.

Holding the early probe also held the 2507.00 bias-up signal which put into play an offsetting test of the 2498.00 bias-down signal. Becoming “unfinished business below” may have enabled 2498.00 to attract price down later. The FOMC policy statement’s reaction eventually slid to 2494.00.

The low also tested the upper-end of last week’s narrow consolidation. Its “lower prior highs” at 2494.50 offered support coming out of the afternoon bias environment that eventually attacked the open’s high to within 3 ticks at 2506.50. That was only ticks above unchanged, and only reached when the positions-squaring window was lapsing. Not being very decisive makes the close not very reliable for signaling higher highs.

Meanwhile, Thursday’s volume is likely to dip as is usual for Rosh Hashanah, the Jewish New Year. Even if we knew with complete certainty the pattern would resolve down, contracting volume could allow price to probe higher. Even if only intraday.

L’Shana Tovah to subscribers celebrating the New Year!

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

Monitor overnight Globex trading in the chaRTroom here.