Market Wrap (recording & summary)

Monday morning’s slide was signaled before the open, which was greeted under the Globex session’s 2873.50 earlier high at 2865.75. It was also signaled after the open, by triggering bias-down under 2866.25. Its target was soon met at 2860.25, and probed by 6 points down to 2854.50. Exiting the bias environment at or above its 2860.25 target suggested that sellers weren’t gaining traction for their effort. Something that buyers might exploit.

They did. And they didn’t.

Bouncing a cumulative 14 points through the noon hour to 2868.25 wasn’t enough to trigger the afternoon’s bias-up signal. The bias environment slipped 10 points. The balance of the session collapsed 12 points to 2852.00. But was it too late to be strong-handed selling sponsorship?

It was, and it wasn’t.

A very late bounce was probing back above the morning’s low within 3 minutes of the cash session close at 3:57. Sellers didn’t gain traction for their efforts. But probing doesn’t equate to recovering, so buyers didn’t gain traction on the bounce.

Having trended down into the close, gapping up above the afternoon bias environment’s 2867.00 high could form a “session-long rally” setup. The reward for either would be to retest Friday’s 2973.25 high and fill its closing gap, probably retest Sunday night’s 2878.50 “new Globex trend extreme” intraday, and possibly fulfill Friday’s requirement for another new trend high close. An overnight test of 2848.00 would have to be isolated to avoid a deeper meltdown.

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