Market Wrap (recording & summary)

Day-two of the bearish WedEX can’t be considered a success, other than to have produced only temporary bounces. Both Sunday night’s gap up and Monday’s late-morning rally were reversed back into negative territory.

As expected, the afternoon was also likely to probe lower, a consequence of cumulative “ineffectual optimism” beginning at Friday’s low, repeating overnight, and then Monday morning. Monday’s late low bouncing from actually filling the gap that Friday’s low missed, but it was barely filled and so its impatient buying represents another instance of ineffectual optimism.

Bouncing 16 points through the close to 2673.50 was a corollary to the low’s impatient buying, leveraged by the difficulty in generating sponsorship so late in the day.  Google’s post-close earnings helped to inhibit sponsorship, too. But it’s still likely to resolve down, unless an overnight rally produces a sustainable gap up Tuesday.

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