Market Wrap (recording & summary)

Monday’s recovery had extended through the futures close to fulfill its 2812.50 afternoon bias-up target. Then overnight action extended higher to fulfill Friday’s Isolation setup objective of retesting last week’s 2818.00 highs. The overnight rally extended even higher to open at 2823.00, extending through the open up to 2831.25. All off of the overnight dip to 2792.00. Exhausting.

In fact, exhausted. Reversing down during the morning bias environment to 2821.00 fulfilled the pullback’s objective. Its reaction up to 2827.00 was reversed during the afternoon to its 2812.50 bias-down target. Also exhausting.

The vulnerability to a morning reversal was discussed pre-open during the Market Tour before actually recovery 2818.00. Also discussed was the difficulty facing a reversal to actually close back in negative territory. It wasn’t likely. Actually, it was narrowly avoided.

Tuesday’s final two hours trended back up almost 10 points to 2821.50, but not aggressively. A short-squeeze was likelier — not from strong handed buyers, but from dumping the ballast of weak handed sellers. In its absence, overnight action is vulnerable to dipping even deeper to probe under 2808.00, or else to extending the late bounce.

Regardless, Tuesday’s 2823.00 open above all prior highs wants to be retested eventually from below. And Tuesday’s high can be probed up to 2836.00. Those upside objectives help to entrench a bullish context, which counter-intuitively enables a deeper pullback if the recovery hesitates here.

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