Market Wrap (recording & summary)

Overnight drops on macro economic news had every right to extend down Friday morning. Never retesting their lows intraday, holding its ground, probing their interim high… Apparently, the bearish downside catalyst doesn’t have much strong-handed sponsorship.

Those news items had every right to have caused a durable drop. Not extending, being absorbed, retracing entirely… all suggest the market is not inclined to decline. In fact, the Isolation setup formed by maintaining a recovery back above Thursday’s 2800.00-2800.00 lows through the open. The morning’s rally created room for the afternoon’s bearish WedEX to expend selling pressure without invalidating the Isolation setup. Which it barely did.

Apart from the bearish WedEX, Friday afternoon’s decline was probably attributable to headlines of Trump’s new sex (settlement) tapes. That news item has no right to cause a durable drop. Yet, its origin hasn’t been retraced. Not, yet. That can be neutralized by Sunday night strength.

Sunday night strength could greet Monday’s open gapping up — sharply — and not interfere with the WedEX’s bearish post-open influence. WedEX’s influence is only intraday. And having been influential Friday afternoon, Monday morning’s influence is often more pronounced. Then the afternoon would be free to continue fulfilling the Isolation setup and return to Wednesday’s highs.

Both the Isolation and WedEX setup could be simultaneously influential if Monday morning were only to range narrowly sideways. Invalidating either would require the morning to trend beyond Friday’s range.

Details and other markets coverage are discussed in the post-market Wrap recording here.
THE SATURDAY REVIEW LINK WILL BE EMAILED IN THE MORNING