Market Wrap (recording & summary)

Volatility remains alive and well. The market, maybe not so much. Don’t blame optimists. They’re doing their best. Patient sellers are letting them expend all of their energy, and then exploiting them.

One example: Wednesday’s overnight probe under Tuesday’s 2717.50 low was recovered to form an Isolation setup. Perhaps that recovery was exacerbated by a friendly trade war headline, but its reaction had almost fulfilled its 2735.25 objective at the open. So, patient sellers let impatient buyers extend to the next higher resistance, quickly, before strong-handed reinforcements could be attracted. This resulted in a stretched rubber band that easily retraced the friendly headline back down to 2715.50.

Another example: The headline’s retracement would rarely neutralize the initial reaction’s failure. That didn’t inhibit bottom fishers from slowing the decline, while maintaining the downtrend, and forming a Falling Wedge. An attempt to break higher up to 2720.00 missed that buying pressure just when it was needed most, and the downtrend resumed more aggressively to touch 2701.00.

The bigger picture suggests that Tuesday night’s decline has resumed, and that was already an effort to resume Monday morning’s decline. Retesting the 4-week old 2679.00 low should find only obligatory support, already having utilized “lower prior highs” to launch what may soon be a failed upleg. Meanwhile, sellers gained traction for their efforts, so only gapping up above 2722.50 would be credible for reversing the trend back up.

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