Market Wrap (recording & summary)

The next major objective above 2631.75 was 2657.25. The former was met Wednesday. The latter was met Thursday. That’s a lot of ground to cover and a lot of buying pressure to expend in so short of a time. But that’s not necessarily bearish.

Thursday already corrected to some degree. the afternoon dropped 16-1/2 points to test 2642.00. And its late reaction up was retraced entirely. A lot of the overbought condition was relieved. But that’s not necessarily bullish.

The late reaction up could have recovered 2651.00 to maintain the trend’s momentum. Essentially, closing back in the orbit of the 2658.25 high would have made its retest likely. But 2651.00 wasn’t recovered. And it wasn’t for lack of timing or proximity, having probed it by almost 1 point within 10 minutes of the close. Producing all but one element of a setup can be as bearish as the completed setup would have been bullish.

As with Thursday’s open, trending back up Friday all but requires starting by gapping up. Regardless, having held a test of 2657.25, the burden of proof is only buyers. The most bullish scenario may be to not delay extending Thursday afternoon’s slide, to finish correcting.

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

Monitor overnight Globex trading in the chaRTroom here.