Market Wrap (recording & summary)

Friday’s pre-open retest of the 2-week old high followed a relatively shallow interim pullback. Shallow, and narrowly ranging are not accumulation. So retesting the high could have been limited to 2703.00. Extending higher established a couple of other potential peaks that could have limited the session high. Its highest at 2714.00 did just that.

2703.00 and 2714.00 each could have attracted counter-trend sponsorship. But 2703.00 was probed early enough and high enough to put into play targets above it. And despite it fulfilling the afternoon’s buying pressure by being the bias-up target, 2714.00 was tested late enough to dissuade counter-trend sponsorship.

Clearly, something relevant happened at 2714.00. It was pierced by a single tick before reacting down 3 points into the close. Closing above it would have made the next higher objective at 2722-2727 more capable of extending higher, or at least ranging sideways. If met Thursday morning immediately after having held 2714.00, then 2722-2727 would be as vulnerable to reacting down as 2703.00 and 2714.00.

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