Market Wrap (recording & summary)

Ultimately, Monday morning’s decline was not rejected by the close. Similar to Friday’s drop, which had also bottomed during the noon hour, the balance of the afternoon ranged sideways. But unlike Friday’s drop, Monday has left the decline with no room for noise below.

Either the extended pullback testing 2801.50 has expended all near-term selling pressure, or another 20-25 points lower is underway.

Already bouncing into Monday’s close would at least have signaled that 2801.50‘s leg was done. Instead, Monday’s closing action was overlapping 2801.50. Rejecting it’s test by proxy Tuesday requires gapping up above the prior high, which is 2811.25. That’s Monday afternoon’s high, and having trended down into Monday’s close, the setup would also trigger a session-long reversal.

Any shallower opening strength Tuesday would remain vulnerable to extending down to 2875.00-2881.00. Greeting Tuesday’s open in negative territory would already suggest the decline is extending down. In lieu of gapping up sufficiently, only an Isolation setup that temporarily probes fresh lows overnight would be credible for rallying Tuesday.

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