Market Wrap (recording & summary)

Thursday’s open was greeted by overnight action having trended down relentlessly. The open didn’t reject it, so sellers were not marginalized despite not extending down. In fact, the 2549.00 bias-down signal held its test as support, putting into play an offsetting test of the 2557.00 bias-up signal. The bounce peaked upon filling the gap back up to Wednesday’s 2553.25 close, which was also Tuesday’s high. So, again, never recovering positive territory kept sellers from becoming marginalized. Meanwhile, the gap’s obligatory, natural resistance — and a negative knee-jerk reaction to who is being interviewed as Yellen’s replacement — pushed price back down to fresh session lows at 2546.25.

Closing under the morning’s low would have gained traction for sellers. For once. Despite the distributive action above, sellers have failed to close under relevant lows. Thursday was another one of those failures. Probing under the morning’s 2547.25 low didn’t hold, and was recovered through the close. The door remains open to probing fresh highs — presumably the 2557.00 unfinished business above. And any fresh high remains vulnerable to reversing back down intraday. The ongoing significance of inflationary data on the Fed’s action plan makes Friday morning’s barrage of consumer data capable of swinging price around in circles. So, multiple directions are possible intraday, especially if the open is trending in one direction or the other.

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

Monitor overnight Globex trading in the chaRTroom here.