Market Wrap (recording & summary)

This morning’s 2620.00 bias-down signal was tested down to 2612.25, and recovered in time to avoid triggering. That put into play an offsetting test of its 2638.25 bias-up signal. And it was tested before the first hour ended, when exceeding it would have renewed the bias-up. But it was still being overlapped.

The rally extended anyway.

If tested during the no-bias environment, the untriggered 2638.25 bias-up signal would be required to define the window’s upper-end, or else trending above it is required to be retraced. Both constraints could be invalidated if the rally’s sponsorship were to prove itself worthy — by exiting the bias environment above its 2646.00 bias-up target.

It was.

And having rejected the no-bias and its required retracement, the rally has only extended. The open’s shallow muted reaction to the Employment Situation report leveraged Thursday afternoon’s pent-up pressure to extend sharply higher. The afternoon’s 2655.00 bias-up signal triggered and its 2662.00 bias-up target was ultimately probed up to 2669.50.

The session ended by retracing the bias environment down to 2657.00, but no prior low was attacked. The session closed by overlapping Wednesday’s 2658.50 high, and not by closing above it, so extending to 2674.00 and 2684.25 is not necessarily in-play..

Details and other markets coverage are discussed in the post-market Wrap recording here.
WE’LL APPLY THIS AND MORE TO THE BIGGER PICTURE AT THIS WEEKEND’S SATURDAY REVIEW. ITS LINK WILL BE EMAILED IN THE MORNING.