Market Wrap (recording & summary)

Did Monday’s pre-open terror attack upset the timing for a top? Did it prevent topping in this area?

Knee-jerk reactions to headlines are by definition weak-handed sponsorship. They are usually retraced entirely to their origin. Even if strong-handed trending were already underway in that direction, they’ll get out of the way for the natural reaction. Which is what happened to Monday morning’s 5-point collapse to 2652.25. The attraction to “unfinished business above” at 2660.50 outstanding from Friday helped.

In fact, 2660.50 was the morning’s high. But rather than test it at the open like a common Monday template, fresh highs were maintained. This attracts reinforcements, and adds sponsorship for extending to 2667.25. It might have helped the afternoon avoid collapsing when bias-up failed to trigger. And it might be helping post-close action surge to 2667.25.

Any higher would next target 2673.00. Meanwhile, the burden of proof is on this post-close surge extending — and not being rejected overnight. Replacing pre-open weak-handed pessimism with post-close weak-handed optimism leaves the market as vulnerable to reversing direction again.

• Details and other markets coverage are discussed in the post-market Wrap recording here.
• Monitor overnight Globex trading in the chaRTroom here.