Market Wrap (recording & summary)

Despite gapping down, Tuesday morning trended up to fulfill the bullish WedEX. An 11-point surge out of the open was followed by a 20-point upleg into noon, interrupted by a lengthy 14-point pullback. As if suddenly realizing WedEX’s influence ends at noon, the balance of the session trended down to fresh lows.

Fresh post-open lows, which also probed under the overnight lows. The bullish influence was indeed done.

So, now the question gets a question. The question is whether last week’s rally was only a temporary corrective bounce. And now the question it gets is whether the decline into Tuesday’s lows is resuming the previous decline.

Yes, according to oversold RSIs at Tuesday’s low, which require a retest. Also according to sellers having gained traction through the bias environment exit and the final hour’s entry. Both setups keep alive the downward momentum — the attraction below, and the traction earned before it. But last week’s rally hasn’t yet been retraced deeply enough to signal its trend has peaked, let alone been replaced by a downtrend.

Gapping up enough Wednesday could invalidate sellers’ traction and delay retesting the low’s oversold RSIs. Follow-through to gapping up enough could resume the rally. Meanwhile, there’s only one lower objective to be met while keeping in the context of correcting the bounce before it resumes. Any deeper would start to signal the correction had ended.

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