Market Wrap (recording & summary)

Thursday and Wednesday’s sessions differed from each other in 1-2 relevant ways. Wednesday had been greeted by an overnight rally that stalled through the morning, and Thursday had threatened not to extend overnight highs until the open rallied. Wednesday’s rally peaked during the afternoon bias environment, while Thursday’s peak developed as the bias environment was entered.

But their intraday rallies were nearly identical. Both began by gapping up, then trended up — sharply, almost directly to their objectives, where the balance of each session ranged sideways.

The similarity is relevant because it suggests that Friday will develop differently. Most of the intraday characteristics, if not all of them. So, this doesn’t tell us how Friday’s pattern will develop, but how it probably won’t. For example, gapping up again would likely fail. Gapping down could recover, but probably not into another substantial rally.

Meanwhile, Friday is being greeted with no “unfinished business above” (again), and a lot of room for backing-and-filling below. Neither of which is necessarily bearish, but keeps alive volatility into the weekend.

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