Market Wrap (recording & summary)

Did the ongoing rally just save itself from disaster? The Up/Down-crash now has two consecutive session not closing higher. The rubber band isn’t being stretched so tightly that it must snap back down — ranging flat-to-lower Friday and Monday have let off some of the rally’s steam.

Of course, that addresses the setup’s “Down” result. It also has potential for “Up,” or had. Losing its count before reaching the 10th session has also lessened potential for exploding higher. Fresh highs remain likely, if only to neutralize the “unfinished business above” at 2552.00. A crash isn’t the only way to react down.

Monday’s open was tracking a template for probing a fresh high, perhaps up to 2552.00, before reacting down sharply. Done early enough, that could have fulfilled selling pressure in time to recover into the close. But the open stopped pessimistically short. And a recovery was inhibited by the attraction back down to oversold RSIs at the morning’s 2543.50 low, and to testing the morning’s 2541.00 bias objective.

Monday’s late drop fulfilled those, while creating a new attraction to 2539.25. A late bounce didn’t recover 2543.50 in time to invalidate the downside momentum, which could extend to 2536.00 (+/- 5 ticks) even if only overnight. Rallying Tuesday morning would all but require gapping up to be credible for extending.

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

Monitor overnight Globex trading in the chaRTroom here.