Market Wrap (recording & summary)

The ongoing series of “ineffectual optimism” since Friday’s low was almost invalidated by Tuesday’s gap up above prior highs. But Tuesday’s gap up was back under prior highs. Overnight highs had probed higher, but it was just another instance of ineffectual optimism.

An unsustained overnight bounce was one form of ineffectual optimism. Some of the other instances had stopped optimistically short of their potential. Tuesday’s post-open action didn’t hesitate to compensate for those delays. The morning dropped sharply to attack prior lows. The afternoon probed sharply lower.

Tuesday’s low essentially filled a gap, which could contribute to forming a bottom. Except that this particular two-week old gap itself had stopped optimistically short of fully bottoming before launching a rally. And Tuesday’s own recovery held “higher prior lows” to avoid rejecting the dip altogether.

Potential for a bigger intraday corrective bounce probably diminishes greatly if not already underway Wednesday morning. Meanwhile, resuming the decline would find more dominoes ready to fall.

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