Market Wrap (recording & summary)

Tuesday’s gap up immediately neutralized the 2590.50 “unfinished business above” that had been left outstanding from last Thursday afternoon’s pattern. It had provided context for anticipating the interim decline was only a temporary pullback. The gap up barely hesitated extending, resolving higher on tests of two prior resistance levels. Holding either one would have ended the rally there.

2600.00 was the likely objective for not rejecting the gap up. It was tested by a false break out of an otherwise narrow consolidation. The pattern is a “failed Ascending Triangle.” Its rejection broke back under the range ahead of the close, and then after. Typically, the reversal completes a correction — probably either to 2591.75 or to 2588.25 — and then recovers to resume the prevailing trend.

Evaporating volume into Thanksgiving makes it only more difficult to attract sponsorship for trending. There is no “unfinished business above” that requires a recovery or resuming the rally. Unless trending up to new highs through the open, then Wednesday morning’s likely scenario is backing-and-filling and retracing the rally.

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

Monitor overnight Globex trading in the chaRTroom here.