Market Wrap (recording & summary)

Monday morning’s weakness gets a benefit of the doubt that it was fulfilling the bearish WedEX. The indicator’s influence tends to be more obvious after being at all influential Friday afternoon. But continually struggling with negative territory, until the bias environment begins lapsing. is the only qualification necessary.

Isolating another probe under Thursday’s 2800.00-2802.00 lows to its own timing window meanwhile preserves Friday’s Isolation setup. It’s somewhat diluted by the extra chipping away at support, leaving less of it to defend against another downleg. And another downleg becomes likelier the longer that another upleg hasn’t yet exploited the isolated sellers.

The market often finds a way to satisfy competing interests, and Monday’s tactic was the morning’s no-bias signal. Holding a test (several times) of the 2798.00 bias-down signal and putting into play an offsetting test of the 2806.50 bias-up signal, the market left itself a trail of crumbs to find its way back up.

A similar tactic is the afternoon’s narrowly-triggered bias-up signal above 2805.75. Leaving its 2812.50 bias-up target outstanding as “unfinished business above” can help to resume the rally Tuesday. One wrinkle, though — narrow afternoon ranging between 2807.50-2809.50 broke higher post-close in reaction to GOOG’s earnings, already touching 2812.50. Not immediately finding reinforcements at Tuesday’s open would likely produce a morning of backing-and-filling.

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