Market Wrap (recording & summary)

Lower-end, meet upper-end. Turnabout is fair play. What’s good for the goose… Sometimes, the subject lines just write themselves.

Only a brief window of opportunity would allow Friday morning’s open to extend beyond the range’s upper-end. Otherwise, the session’s likeliest scenario was to range sideways. The strong second likeliest scenario was to trend away from the range’s extreme. The drop would target 2740.00, but with no assurance of fulfilling it before the close.

Most of a Head & Shoulders pattern had formed pre-open off of 2741.50, and the opening 15 minutes of volatility completed it. Price had all but reversed down, supported by the morning’s 2730.50 bias-up signal. The bias environment began lapsing, and the dip resumed.

The became relentless thanks to China retaliation headlines. Interim support was sliced through on the way down to 2712.00. Its reaction bounced to 2719.50 without violating the 2713.50 bounce limit, which the close was overlapping.

The close was also under 2718.00. A normal environment’s ongoing downtrend would have required closing back under it to offset Monday’s close above it. Closing back under it during the early close session, ahead of a closed session, still gets a benefit of the doubt. And still needs confirmation by extending down Thursday without delay, regardless of a possible bounce during the Globex holiday trading.

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