Market Wrap (recording & summary)

Holidays impact liquidity, which impacts volatility, because lower volume inhibits participation, and that’s just among the participants that bother showing up, while so many other participants are on holiday, which is impacting liquidity. You’ve heard of the Circle of Life? That’s the circle of death.

Or, it can be.

If Monday afternoon’s 24-point rally is any indication, then trending attempts remain possible. Trending within the range, more so than trending beyond it. Like Monday’s recovery from its overnight probe of 22 points under Friday afternoon’s 2720.50 low. That was back TO the range’s lower-end, but not THROUGH it — before reversing 24 points back INTO it up to 2728.50.

And the afternoon rally came from a position of weakness at 2704.00, already retracing the morning’s rally, and now likely to retrace Monday afternoon’s rally. Likely to retrace it Tuesday so long as the open isn’t extending Monday afternoon’s rally, and preferably already trending down.

Extending any higher Tuesday morning wouldn’t be any likelier to retrace last week’s highs. Actually, Tuesday morning’s likely pattern only ranges sideways, still being vulnerable to trending into the 1:15 PM ET early close. [Programming Note: Tuesday’s Market Wrap will be held early.]

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