Market Wrap (recording & summary)

Wednesday ahead a three-day holiday weekend is similar in principle to expiration. That’s when we look for specific clues at the close to forecast any bias or trending into and out of the weekend. We do that on Wednesday because it’s the week’s most liquid session, so big money / strong hands is most active.

There’s nothing predictive ahead of a holiday, but it’s still the week’s best liquidity. The 24-point session-long plunge on this Wednesday is being blamed on institutional selling pressures. And that is perfectly plausible. It’s not in reaction to a news event that can be discounted or resolved. Its lifespan could last the week.

Meanwhile, the next lower attraction at 2243.00 which requires a retest was attacked to within 2 ticks Wednesday afternoon. That doesn’t qualify as neutralizing oversold RSIs. Its actual test could be isolated to the overnight, or to Thursday’s opening 15 minutes of volatility, clearing the way for reversing back up. Gapping up above 2250.00 could extend higher, too. Otherwise, there is greater potential for extending down to 2215.00 and 2205.00.

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

Monitor overnight Globex trading in the chaRTroom here.