Market Wrap (recording & summary)

Sunday night was greeted by a relief rally on tax reform advancing over the weekend. Monday’s open offered the intraday crowd an opportunity to express a similar sentiment. But Wednesday and Thursday’s rally last week already had anticipated the news, so rallying Monday morning was likely to reverse down. Which it did.

We patiently awaited a break either way of the overnight sideways range. The first spot to fade it followed the first detached tick from testing 2663.75 by 6 ticks. Its reversal down touched last Wednesday’s high to become relevant, so that its bounce could neutralize the 2660.25 open. Suddenly, there was no “unfinished business above.”

The morning’s 2651.00 low launched another sideways range attacking 2658.00 through the afternoon bias environment. Multiple opportunities to rally were ignored, and it wasn’t long before learning why — the bias environment exit resumed the decline. Another collapse slid to test 2639.00, where the balance of the session hovered until a last-minute blip to 2638.00.

Monday is the second session to have tested the rally’s 2657.25 objective. And both of its tests have closed back under 2651.00. This suggests distribution. Meanwhile, continued underperformance by NDX and outperformance by the Dow suggests big money rotating out of speculative and into safety.

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

Monitor overnight Globex trading in the chaRTroom here.