Market Wrap (recording & summary)

Testing the rally’s 2809.00 target Sunday night would have sufficed for fulfilling it, if Monday had reversed momentum down. But an intraday test of the target remained in-play otherwise. And potential for probing higher objectives at 2813.00-2816.75 remained intact, too.

But Monday’s closing action had narrowly avoided triggering a hold-short setup. So, Tuesday was no more likely to trend up than to reverse down. It reversed down, probably less from NFLX and AMZN technical glitches and much more so due to Fed Chair Powell’s day-one congressional testimony. (NFLX and AMZN recovering intraday didn’t hurt, although NFLX bounced only to its resistance at the sell signal identified during this weekend’s Saturday Review.)

Speaking of the Fed… Day-two of the Fed Chair’s congressional testimony rarely duplicates day-one. Comments are already discounted by the second day, including anticipation for the second day to follow-through. More often, the Fed Chair walks-back various comments that were misinterpreted or overly discounted.

Anyway, dipping overnight to within 2 ticks of the morning’s 2789.25 bias-down target got a lot of selling pressure out of the system. Recovering the bias-down signal in time to avoid triggering then put into play 2803.50. And triggering the afternoon’s bias-up put into play 2816.75.

The afternoon’s bias-up target was met to within 4 ticks at session highs, while at least 1-minute RSI diverged negatively. Its reaction down closed back under 2813.00. Closing under 2809.00 after probing 2813.00 would have reversed momentum down. It hasn’t, but probably will if the rally’s momentum isn’t restored immediately Wednesday. Which will be interesting as the WedEX setup forms into the close.

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