Market Wrap (recording & summary)

All but one of Thursday’s signals attracted reinforcements to exceed their 3-4 minute initial extremes. The exception was the post-open 7-point plunge that probed overnight lows down to 2713.50. Too much, too soon — and during the wrong timing window — to attract reinforcements. The trapped shorts were squeezed back up.

This began a session that offered multiple more instances of weak-handed buying. Their impatience was revealed in temporary steep slopes and ill-timed tests of resistance. The jury is still out on one possible instance of weak-handed selling.

First, a sampling of weak-handed buyers. Holding a test of the morning’s bias-down signal already neutralized upside momentum by fulfilling its offsetting test of the 2725.75 bias-up signal in time to trigger it, but not. The unlikely morning rally that would be doomed to failure if tried, which tried to its fullest potential at 2732.00, and failed. Intraday tests of downtrending pivotal resistance (see the chart and video) that produced peaks.

Weak-handed selling is possible in the afternoon’s no-bias trending under the 2721.50 bias-down signal. It was doomed to failure like the morning’s extended rally, unless the 2715.00 bias-down target maintained a break. And it broke, with 4 points of buffer down to 2711.00, but was still recovered. The recovery neutralized its attraction above at the bias-down signal retracement, but no more. No reward for the recovery, so no resolution yet.

Meanwhile, Monday afternoon’s prior high held its test Thursday, after Wednesday peaked upon testing the “lower prior highs” of its structure. Reversing down to the interim low held, so I can’t yet say that the bounce’s failure reversed the trend down. And might not say it all, unless and until 2717.25 and 2711.00 break lower.

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