Market Wrap (recording & summary)

Any opportunity to reinstate the 1987-style crash template had all but disappeared at Wednesday’s open. The overnight Symmetrical Triangle’s false break down was reversing up more substantially, instead of extending the overnight plunge.

That didn’t foreclose upon potential to reverse down less aggressively into the afternoon, but the rally extended instead. Ultimately, 90 points off the 2559.50 overnight low and testing 2650.00 was probing above Monday’s 2638.00 high.

The recovery of dropping from last Thursday’s high barely exceeded its 2644.00 bounce limit’s room for noise at the close. But the limit was holding before coming within 3 minutes of the cash session close. The similar bounce limit has yet to be met at 2660.00, where retracing the entire last downleg from last Tuesday’s high could still be only temporary.

So, extending any higher would seriously undermine the near-term downside momentum. And it would suggest a longer delay in at least retesting the lows down to 2509.00-2511.00. Almost any immediate weakness Thursday would be credible for extending down into and out of the weekend.

In case you missed it earlier, click here for a quick video description of how the overnight Symmetrical Triangle offered guidance and confidence to being long.

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