Market Wrap (recording & summary)

Tuesday afternoon’s rally had gained traction for its effort. Reversing down Wednesday morning required gapping under a relevant support. Wednesday’s open did gap down — after testing fresh highs up to 2658.50 several times overnight.

But the 2648.00 open was too shallow to reflect strong-handed sponsorship. And the morning’s 2642.00 bias-down signal didn’t trigger. So, no reversal down.

Also, no intraday probe above Tuesday’s 2654.00 intraday high, not until the afternoon’s FOMC policy statement reaction. Surging to 2658.50 took RSIs overbought, which requires an eventual retest.

Oversold RSIs at the morning’s 2640.25 low were more attractive. Its retest targeted at least 2635.00, but that extended to 2629.00. Retracing to between 2630.50-2633.00 within 3 minutes of the cash session close avoided triggering both a hold-short and hold-long setup. Actually, 2633.00 was being overlapped, which is not a decisive break.

Despite not triggering hold-short, post-close action is extending down so far to 2627.00. Isolating it to open Thursday back above 2635.00-2638.00 could target a retest of Wednesday’s 2658.50 high, which would all but ensure retesting Monday’s 2783.25 high. Extending down anyway could resume the bigger picture’s decline.

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