Market Wrap (recording & summary)

Gapping up sharply both overnight and intraday is difficult to absorb, let alone to reverse back down. Sunday night’s gap up never extended, and Monday’s gap up retraced its initial probe follow-through. That’s at least a bearish bias. But it’s not a sell signal.

Almost equally important to intraday patterns is the close. And the close was still overlapping last Monday’s 2725.00-2732.00 consolidation. Tests of its lower-end had reacted down, sometimes considerably, but not durably. Closing above the consolidation’s upper-end can launch a new upleg.

Or, closing above the consolidation’s 2732.00 upper-end can trigger a obligatory blip-up that finds no reinforcements before collapsing. Or, 2732.00 has now held, and Tuesday is read to trend back down. Sunday and Monday’s rally have created room down to Friday’s 2713.00 close before any weakness can be more than noise, and signal the trend reversing down.

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