Market Wrap (recording & summary)

For being the eve of the anniversary of 1987’s “Black Monday” market crash, Wednesday wasn’t very intimidating. Gapping up and then ranging exclusively in positive territory doesn’t seem bearish. Perhaps a reversal is trying to ambush the rally.

An ambush is possible. Here’s how…

This being expiration week, the WedEX setup triggered, and its signal is “actively bullish.” That was done by essentially breaking out above a multi-session range, defined by Tuesday’s 2557.25 close. That happens also to be  Wednesday’s 2557.25 low, so gapping down under it Thursday would affect the WedEX signal by proxy, and adjust it to “passively bearish.”

But that’s just regarding WedEX, which only influences Friday afternoon and Monday morning. Due to Wednesday’s last timing window having overlapped the 2561.50, gapping down under Wednesday’s low Thursday would also reverse near-term momentum down.

Those are the bearish scenarios. Meanwhile, two pieces of “unfinished business above” were created Wednesday, and both were left outstanding. The pre-open 2562.25 “new Globex trend extreme, and the morning’s 2563.75 bias-up target. A bearish template is available if they’re fulfilled after gapping down Thursday, but it would take a circus-quality contortionist to qualify.

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

Monitor overnight Globex trading in the chaRTroom here.