Market Wrap (recording & summary)

If not for a couple of headlines that triggered negative knee-jerk reactions, Monday morning’s 2366.00 bias-up signal might have triggered a rally. The no-bias signal was invalidated, and the afternoon trended up to within 3 ticks of the morning’s 2371.50 bias-up target.

Sunday night’s 2370.00 high had formed a “new Globex trend extreme” requiring a retest that was fulfilled the same day. Potential remains alive to the nearby 2372.00-2374.00 objective discussed during this weekend’s Saturday Review. Meanwhile, Monday’s new high close is a breakout. So, a second consecutive higher close Tuesday would imply closing above 2374.00, requiring a third higher close if not also extending the rally to 2418.00.

Gapping down Tuesday could still spend the day rallying back to unchanged without confirming the breakout, perhaps probing 2372.00-2374.00 intraday to neutralize its attraction. While that wouldn’t preclude resuming the rally Wednesday or eventually extending it to 2418.00, it would not be a position of strength.

Details and other markets coverage are discussed in the post-market Wrap recording here.

Monitor overnight Globex trading in the chaRTroom here.