Market Wrap (recording & summary)

Tuesday’s unchanged open at the 2928.00-2929.50 range was a helpful early indication that sellers had not gained traction. And sellers had had an excellent opportunity to gain traction, having probed 5 points under Monday’s 2922.50 low. But the drop  down to 2917.50 was isolated to the overnight, and a post-open dip to 2924.00 was recovered to fresh highs at 2936.00 at noon.

Then that stopped. Then things changed.

Choppy sideways action through the afternoon tested 2931.00 through the noon hour and recovered 2936.00 at the bias environment high. But the bias environment exit started trending down, and touched the open’s 2924.00 low.

So, just one big sideways range right?

Actually, sellers gained traction by entering the final hour under the bias environment low and then trending down deeper through the 3:10-3:20 proxy window. Their reward is at some point to probe under 2924.00 — either into the close, overnight or Wednesday morning, or some combination — regardless of its durability, degree or resolution.

Which might seem to contradict the position of strength created by mid-day hovering under 2936.00, and managing to close back above 2928.00. And it might ultimately contradict it, by dipping back down to and through Friday afternoon’s 2915.50 lows, where the pattern becomes vulnerable to collapse. Meanwhile, my assumption is that a shallower dip will itself be isolated, and then be retraced to resume the recovery.

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