Market Wrap (recording & summary)

Was that a Wednesday Wreversal? They don’t start from extreme gaps, so no, although the three distinct legs would qualify otherwise. The setup doesn’t correlate at all to one trend’s direction or to another’s resolution. But it does reflect growing volatility, so be prepared.

Wednesday’s session was also interesting for invalidating its afternoon bias-down. Recovering 2708.00 was too late to avoid triggering, but its recovery was well-rewarded by reversing up 22 points to 2730.00. Also remarkable for having absorbed the original reaction to Gary Cohn’s resignation.

Meanwhile, Wednesday closed back in the 2725.25-2727.75 corrective bounce limit, which had also held Monday’s high and defined Tuesday’s close. So, the bearish templates are limited again to either rejecting probes of fresh highs before reversing down sharply, or else already collapsing through the open. Extending higher or trending down substantially will be difficult on the day before Friday’s pre-open Employment Situation report. But extending fresh highs Thursday morning would start making fresh highs at 2753.00 or 2765.00 likelier.

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