Market Wrap (recording & summary)

Tuesday’s rally didn’t need the endorsement of extending higher ahead of Wednesday’s open, and then surging higher through it. Slowly resuming the rally would have been bullish, too. Any setup would have pointed higher so long as no window was allowed to back-and-fill into negative territory — specifically under Tuesday afternoon’s 2623.00 prior low.

Wednesday’s surge fulfilled upside potential by testing its 2633.50 bias-up target. While that satisfied buying pressure, its sponsorship proved impatient by not at least triggering the 2628.50 bias-up signal. The consequence was to probe under Tuesday afternoon’s 2623.00 prior low.

Backing-and-filling was actually the immediate consequence to rejecting the open’s surge. But probing under 2623.00 didn’t begin until the morning’s bias environment began lapsing. And 2623.00 was recovered as the noon hour began, holding several tests as support through the afternoon. A final attempt during the 3:10-3:20 proxy window failed to maintain its probe under Tuesday afternoon’s 2623.00 prior low.

Absorbing the morning’s drop should have earned its own reward, to recover the morning’s high. Unless Thursday’s open were to gap up, only ranging sideways all Wednesday afternoon suggests that a fresh low is still coming first, e.g. the morning’s 2617.50 outstanding bias objective. Isolating any fresh low to an irrelevant window would end the pullback and allow the rally to resume. Otherwise, a deeper pullback is underway.

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

Monitor overnight Globex trading in the chaRTroom here.