Market Wrap (recording & summary)

Is that a new downtrend you’ve got there, or are you just happy to get sellers out of the way?

The 3-day holiday weekend ended more abruptly than the calendar had suggested. May 14-22’s Double Top already had retraced its 2700.00 interim low too deeply to rely on the rally resuming. Corrective bounces testing and retesting the 2730.00 area never regained momentum. And Friday’s inside day didn’t change matters. So, Tuesday’s gap down to 2700.00  had only two choices: Extend down, or else bounce before extending down.

It was a little of each, as the open’s 2697.00 low was recovered to test “higher prior lows” up to 2709.50 before retracing entirely. The 2690.00 overnight low was soon retested by a plunge into the noon hour that got to 2676.50. Bouncing to 2691.50 was retraced back to the low, and then recovered back up to 2691.50 into the close.

A lot of selling pressure was satisfied below. Renewing the morning’s bias-down signal under 2708.00 had put into play 2679.00-2683.50. It didn’t require an intraday retest. So, is its quick test the sign of a correction wanting to resolve up soon? A higher close Tuesday might have suggested as much, but the decline’s momentum remains intact.

Gapping up — or down — by enough margin Wednesday could reverse or extend the decline, respectively. Any strength shallower than 2715.00 is likely to resolve down. Meanwhile, since Tuesday’s sellers gained no traction for their efforts, the 2675.00-2676.00 lows need to break Wednesday before suggesting buyers are marginalized.

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