Market Wrap (recording & summary)

Tuesday afternoon’s sellers had gained traction through the bias environment exit and the final hour’s entry. Gapping up enough Wednesday could have invalidated that traction. Not gapping up enough would reflect weak-handed sponsorship and doom to failure any bounce.

Apparently, no matter how long that might take. We know, because Wednesday morning’s rally held up into the FOMC Minutes, and even extended on a knee-jerk reaction to it. That only exacerbated the rubber band stretch, which snapped back down as the bias environment began lapsing.

The afternoon peak tested its 2646.50 bias-up target by 1 tick while RSIs diverged negatively. Its reaction down collapsed to eventually probe the afternoon’s 2619.00 bias-down target and filled gaps back down to Tuesday’s 2714.00-2715.25 closes before correcting.

The afternoon collapsed again to retest oversold RSIs at Tuesday’s 2705.75 low. The next lower objective at 2701.50 was probed by 8 points down to 2693.50. Unless rejected immediately Thursday, a new downleg is underway. Meanwhile, the third consecutive day of morning rally and afternoon drop has likely conditioned buyers not to buy.

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