Market Wrap (recording & summary)

Tuesday’s open finally postured defensively ahead of the scheduled afternoon tax reform vote in the House. Sliding 7 points from 2697.25 extended down another 2 points to 2688.00 for the morning low. But the defensive posturing persisted into the noon hour’s 2685.50 lows at the afternoon’s bias-down signal.

Ranging higher into and out of the actual vote held 2690.00 resistance. Defensive posturing was no longer needed. But why not. Fresh lows into the final hour reached 2683.25.

That last low had a bullish purpose which the morning’s drop had tried, and the noon hour drop avoided. It was to stretch the rubber band down so it could snap back up. The morning’s test of 2688.00 never recovered 2692.50, and the noon hour’s low only firmed off of the bias-down signal’s test. The final hour’s low attacked 2688.00 and reacted down entirely.

Tuesday afternoon’s 2690.25 bias environment high is the afternoon’s high, and closing action trended down. So, maintaining a gap up Wednesday above 2690.25 would form a session-long rally setup targeting those evasive new highs. Meanwhile, simply extending down would next target 2675.00, and potentially lower.

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