Market Wrap (recording & summary)

So, is Wednesday’s bounce not a temporary correction? It avoided closing back under 2715.00, which was the minimum requirement to signal that upside momentum had lapsed. No “unfinished business above” was left outstanding, as the afternoon’s 2727.25 bias-up target contained session highs. But reactions didn’t extend back under 2725.25 into the final hour or during the proxy window, so breaking later to its 2721.50 target was only noise.

But the late break did serve to chip away at support around 2721.50. It’s not any likelier to be retested Thursday, but its intraday retest is now less likely to hold. Still, its break has room down to 2711.00 before signaling the trend reversing back down.

Probing Wednesday’s 2729.25 high overnight but greeting Thursday’s open back under the initial overnight lows would also signal the trend reversing back down. Preferably, fresh highs would first probe above 2733.00.

Regardless, keep in mind that this week’s action now contains multiple occurrences of gapping and running in the gap’s direction. Gapping significantly and running substantially. Being self-contained by fulfilling any objectives and leaving no “unfinished business” outstanding. So, gapping open in either direction Thursday would be likely to extend in that direction — even up. Thursday isn’t any likelier to gap and run, but not doing so would make Friday likely to repeat the pattern.

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