Market Wrap (recording & summary)

Detour? Refueling? Warning shot across the bow? Thursday’s plunge and then its complete recovery have some important implications…

Thursday’s plunge was all but finished before triggering the morning bias environment signal at 10:15. The balance of the session trended back up. Paradigms shifted quickly:
— After the post-open plunge to 2545.25, the open’s 2550.25 print was recovered before the first hour had ended.
— The open’s 2554.50 peak was attacked to within 1 tick before the morning’s bias environment began lapsing.
— Wednesday’s “higher prior lows” were touched early in the afternoon bias environment.
— And the gap back up to Wednesday’s 2559.50-2560.00 close was filled by the session’s last cash session bar (already attacked to within 3 ticks as the 3:10-3:20 proxy window was ending).

Each stage rewarded buyers for having absorbed sellers, and for a building block to produce the next leg’s improvement. A couple of shortcomings keep the door open to sellers retaking control, similar to Thursday’s gap down by proxy. Also similarly, not gapping down Friday would default to buyers having gained traction for Thursday’s effort.

One caveat to further upside: Opening enthusiasm of gapping up would again be vulnerable to collapse, especially if Wednesday’s 2562.25 and 2563.75 “unfinished business above” were fulfilled. Meanwhile, Wednesday’s lows were only being tested as resistance before Thursday’s close, and not quite recovered, so the morning’s WedEX inversion to passively bearish remains intact. Trending up into the weekend is not at all assured.

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

Monitor overnight Globex trading in the chaRTroom here.