Market Wrap (recording & summary)

Monday’s rally was premature. It started from too shallow of a pullback, and too near the open. Dipping to 2566.75-2568.50 and then recovering 2570.00 would have trapped intraday shorts to refuel longs. Post-open weakness also would have delayed the recovery leg until it could blend into the noon hour’s timing window and extend into the afternoon.

Dipping only to attack 2570.00, only pre-open, and surging through the first hour, didn’t attract reinforcements. Eking higher into a late surge up to 2585.50 was retraced back under the opening surge’s 2582.25 high for no net gain.

Monday’s rally did gain some traction. Exiting the afternoon bias environment above the noon hour’s high was the setup, and extending to fresh session highs through the 3:10-3:20 proxy window was the confirmation. If not already extended higher into the close, the traction can offer bullish context that enables a recovery after trending down overnight.

Overbought RSIs at Monday’s high require an eventual retest. That could also offer bullish context to recover from an overnight dip. Retesting Monday’s high already overnight would become vulnerable to reversing down, somewhat similarly to Sunday night’s initial rally.

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

Monitor overnight Globex trading in the chaRTroom here.