Market Wrap (recording & summary)

Thursday’s Isolation setup wasn’t very productive. But it prevented a resumption of overnight selling. Isolating the overnight probe of Wednesday’s lows puts into play a retest of Wednesday’s 2796.00 high. Unfinished business is already left outstanding from 2798.00. Thursday morning’s backing-and-filling was usual for the setup, but no afternoon rally was unusual. Nevertheless, fresh highs remain likely so long as Wednesday’s lows hold.

Already rallying overnight to within proximity of the highs would be vulnerable to an early rejection of probing prior highs. That pattern has been absent for a couple of sessions. A hold-long setup narrowly avoided triggering, but almost any overnight strength would be credible for extending.

Meanwhile, we’ll assume the bearish WedEX is intact. It wasn’t triggered decisively at Wednesday’s close, so not rejecting it decisively at Thursday’s open — i.e. only opening at the level whose recovery would have been decisive — keeps the door open to trending down Friday afternoon and more so Monday morning.

Being a Friday, the Friday Factors will be relevant. The morning’s bias tends to persist through Friday’s noon hour. Sponsorship is difficult to generate, while counter-trend sponsorship is more difficult. And a new trend extreme close, which is nearby, would entrench the trend. It’s the rare expiration session that reverses intraday, but they are very productive when they occur.

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