Market Wrap (recording & summary)

Thursday’s unchanged open at 2294.00 offered no suggestion there had been an overnight rally to new highs. But the open’s inability to reverse down probably has the overnight high’s attraction to blame. Complexity while forming the “new Globex trend extreme” at 2299.50 requires its eventual retest intraday.

Probing lower into and out of the noon hour finally bottomed at 2289.50. And a bias-down signal was narrowly avoided. Reacting up to 2294.75 threatened to reverse the trend up. But the threat soon passed, as the final hour’s entry failed to exploit the opportunity to extend higher.

Stronger buyers had not been attracted. The first low wasn’t deep enough, so could a second low steep enough? In fact, the low was attacked to within 3 ticks when the position-squaring window opened. Its test held, but the close was only unchanged from the open.

Perhaps Thursday’s inhibition against resuming the rally was due to anxiousness ahead of several high-profile post-close earnings (e.g. GOOGL, INTC, MSFT, SBUX, WYNN). Well, the earnings are now history. A deeper, steeper dip remains possible, but resuming the rally remains likely, especially by gapping up Friday.

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

Monitor overnight Globex trading in the chaRTroom here.