Market Wrap (recording & summary)

Tuesday’s gap up seems to further confirm the rally is in a stage of relentlessness. Not extending higher intraday doesn’t change that, but it does increase near-term vulnerability to a pullback. That said, trending up or gapping up remain likelier.

Trending up probably would have been attracted back down to Monday afternoon’s Symmetrical Triangle, but Tuesday’s gap up above 2854.25-2856.00 broke that attraction. Reacting back down into the Triangle is still possible, but now it would be from a position of strength, and likelier to recover.

Meanwhile, ranging sideways through Tuesday’s noon hour and afternoon formed a lot of overlapping legs. Separately from the gap up, the overlapping legs creates mass that also makes trending away likely to return. So, another position of strength to help recover from dipping back down into Monday afternoon’s range.

Not that Wednesday’s open won’t immediately extend on its way to 2873.00 and higher. But we’ll know the context of a dip if one appears, whether just testing Monday afternoon’s range down to 2851.00-2852.00, or deeper down to 2841.00-2843.00.

More so, thanks to maintaining Tuesday’s gap through the day, gapping down would form an Island. And since Islands were made to be retested, that would just be another position of strength to absorb another pullback.

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