Market Wrap (recording & summary)

Tuesday’s satisfied buying pressure and subsequent inertia had made a pullback likely. It also made the market vulnerable to overreacting to news. And news came after the close to trigger a 30-point plunge overnight to test 2766.00. Greeting Wednesday’s open 12 points higher eventually extended to attack 2788.00. But the balance of the morning retraced back down to the open, and the balance of the session ranged choppily sideways. That included breaking lower during the very latest stage of the afternoon’s no-bias environment, which could have been forgiven for being no-bias trending. It was recovered anyway.

Having recovered the no-bias trending, the decline was free to resume after the bias environment lapsed. The dip’s recovery was also free to extend higher. An outage at the CME prevented the market from reacting normally. The overnight resolution should reveal the market’s intent, either gapping up above the afternoon’s 2782.50 high, or else breaking under the afternoon’s 2772.00 low.

Not gapping up Thursday maintains the likelihood for retesting Tuesday night’s low. A post-open dip Wednesday to 2768.50 could have neutralized the overnight low’s attraction, and launched a durable intraday rally. Influence at 2768.50 is still likely if tested, but likely to be only temporary on the way down to 2761.00-2762.00.

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