Market Wrap (recording & summary)

Friday and Monday’s drops did it. Tuesday and Wednesday’s intraday rallies did it. Thursday morning’s two choppy consolidations and their breaks lower did it. And now Thursday afternoon’s last two hours have done it.

Done what? Each of these two sequential setups have expanded their bearish aspects. Their second act — be it an intraday decline, or a rejection of resistance, or distributive range — all measured greater than their first.

Selling pressure is growing, which requires its rejection to avoid capitulation. Rejection is often achieved, by gapping up above a relevant level. This current series seems unable to do that. And Thursday’s two sets extended to sharply lower lows that make it extremely difficult to reject at the next open.

Gapping up sufficiently above a prior high Friday would be credible for reversing the trend up into the close, where Friday Factors could create a bigger rally. Otherwise, those same influences can extend the decline to sharply lower lows into the weekend.

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