Market Wrap (recording & summary)

First of all, Monday’s Isolation setup is invalidated. That’s mostly due to the overnight 20-point slide that greeted Wednesday’s open under Monday’s lows. Collapsing another 23 points through the open didn’t help. The morning’s drop never extended, despite being corrected through the noon hour back up to 2819.00.  That’s potentially “ineffectual optimism,” which keeps the door open to probing fresh lows Thursday down to 2802.00.

Meanwhile, the next lower objective held two tests intraday at 2808.00. That would have been more bullish had the afternoon’s retest also probed under the morning’s low before recovering. Which also keeps the door open to probing fresh lows Thursday down to 2802.00.

Wednesday’s last upleg attacking 2823.00 was triggered by a non-financial headline, so retracing to its 2811.00 origin is likely. That happened to be an active buy signal, but the artificial catalyst crowded out the organic sponsorship. Its attraction below could help to start a reversal down, which also keeps the door open to probing fresh lows Thursday down to 2802.00.

Friday’s confirmed breakout had required an eventual third lower close, which Wednesday narrowly delivered. That doesn’t care about any doors open below. The decline could still extend, but gapping up enough Thursday could launch a recovery leg.

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