Market Wrap (recording & summary)

If you liked the last two days…

Thursday ultimately closed under 2749.00. Being “lower prior highs,” it was the decline’s next lower objective. Regardless of bouncing from its overnight tests and late morning test, or even from its afternoon test, only closing back above it would indicate its support had held.

It didn’t.

Interestingly, the next lower objective under 2749.00 is 2721.00 with room for noise under it down to 2712.00. The afternoon’s 2712.25 low reacted up 54 points to 2766.00. It reacted back down to 2727.00, retracing the session’s last surge that had been triggered by a China headline.

Oversold RSIs already make the 2712.25 low’s retest likely. Closing under 2749.00 makes the low’s retest less likely to hold. Closing above 2749.00 still would have retested 2712.25, but from a position of strength. Regardless, oversold RSIs can be neutralized overnight, so that opening back above 2749.00 could form an Isolation setup.

Otherwise, retesting 2712.25 post-open would be likelier to break under 2709.00, which opens the floodgates. So, if you liked the last two days, and a retest of Thursday’s low on Friday or overnight isn’t immediately rejected, then you’re going to love the likely meltdown that follows into and out of the weekend.

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