Market Wrap (recording & summary)

Dropping back down to Tuesday’s lows overnight had all but ensured that Wednesday’s open wouldn’t gap up. And that was the only way to resume rallying immediately since buyers hadn’t gained traction. More so, Tuesday’s lows — and the overnight retests — had narrowly avoided fulfilling their potential down to 2884.50 or 2880.25. But Wednesday’s first hour took care of that, collapsing down to 2877.50.

Oversold RSIs were left outstanding at Wednesday’s low, requiring its eventual retest. That didn’t prevent a couple of higher lows from forming an Ascending Triangle. Its breakout triggered the afternoon’s 2888.75 bias-up signal, but stopped 2 points short of its 2995.00 bias-up target. That’s now unfinished business above since Wednesday afternoon only ranged flat-to-lower back down to within 1 tick of 2884.50.

Closing at or around 2888.00-2889.00 isn’t decisive enough to assume whether the next test is of 2877.50 below or of 2995.00 above. But testing the lower objective first — probably down to 2875.00 — would tell us the weakness since last week has probably been defensive posturing ahead of Friday’s payrolls.

There was no Market Wrap today due to travel.
Monitor overnight Globex trading in the chaRTroom here.