Market Wrap (recording & summary)

The new year’s first session was optimistic throughout. After Friday’s 30-31 point drop from its 2698.25 pre-open high, immediately uptrending wasn’t at all assured. But Tuesday’s 2674.50 open was the minimum requirement to signal that Friday’s post-close portion of its drop was only an anomaly. That was the first step for putting into play a retest of Friday’s pre-open high.

Tuesday’s bias-up signal was renewed and its 2692.75 renewed bias-up target was met to within 3 ticks as the bias environment began. A narrowing consolidation didn’t resolve until one hour following the afternoon bias environment lapsing. But it resolved up as was likely, almost literally exploding higher as was required.

2696.00 was touched at Tuesday’s close. It is natural resistance at a 61.8% retracement of the two-week old high session’s range. Any higher would all but ensure extending to fresh highs at the 2700.00 area, if not also 2703.00. Any higher depended mostly on there having been a deeper interim pullback, for which the new high origin of Friday’s intraday drop disqualified it.

Extending higher than 2703.00 is possible despite too shallow of an interim correction. If carried away with itself, the rally’s next higher objective is 2722.00-2727.00. Similarly, no matter how likely, higher highs aren’t required as there’s no unfinished business above.

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