Market Wrap (recording & summary)
Only a detour, still a detour, or more than a detour? Those are the most important questions to ask of Monday’s collapse. The answer to at least one of those is “yes.”
Already having tested and retested 2745.00, the next lower objective was 2735.00. It defined Sunday night’s low, but it didn’t hold on a retest. The next lower objective at 2726.00-2727.00 was tested too late to attract counter-trend sponsorship to defend it. So, its next lower objective at 2711.50 and 2706.00 had to be met.
The last objective was actually a test of 2701.50, which was limited to non-relevant timing windows that prevented its break. The tests reached 2697.00-2700.00 before finally ending the downside momentum. And having recovered 2706.00 and 2711.50 through the close, 2726.00-2727.00 was put into play. Post-close action extended up to 2723.50.
Recovering 2735.00 would have signaled the decline was only a detour. Bouncing already to leave a higher objective in-play allows this to still be only a detour, but recovering 2726.00-2727.00 Tuesday must also recover 2735.00. Whether or not first fulfilling 2726.00-2727.00, there’s little excuse for much backing-and-filling before actually rallying — and much more delay to that would suggest something more substantial than a pullback is underway.
- 2700Details and other markets coverage are discussed in the post-market Wrap recording here.
- Monitor overnight Globex trading in the chaRTroom here.