Market Wrap (recording & summary)

Monday’s gap up to 2630.00 had bitten off more than it could chew. Its eyes were wider than its stomach. It flew too close to the sun. However we characterize it, Monday’s open extended the overnight rally only briefly before reversing down sharply through the morning.

Whatever it was, the open’s brief strength wasn’t “ineffectual optimism.” The overnight rally failed its attempt to extend, but each of the open’s relevant timing windows held up. The morning’s reversal originated after the 10:15 bias timing window.

Maintaining the open’s recovery above Friday morning’s low did form a sort of Isolation setup. So, the subsequent dip began from a position of strength. Recovering before noon would have been optimal, but at least the drop stopped when the bias environment began lapsing. In either case, its sponsorship wasn’t gaining reinforcements. Regardless, the drop was recovered, and then the morning’s rally resumed. Its minimum reward for having absorbed the dip was to retest Friday afternoon’s ~2650.00 high.

The afternoon rally gained traction first by exiting the bias environment above the noon hour’s high. Entering the final hour above the bias environment high confirmed, albeit still overlapping. Clarification arrived by extending above ~2650.00 through the 3:10-3:20 proxy window. Immediate follow-through already tested Friday morning’s 2658.50 high without closing above it. But unless rejected immediately Tuesday back under ~2650.00, the next higher objective in-play is 2691.50.

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