Market Wrap (recording & summary)

Thursday’s gap down formed a “session-long decline” at the open, one of the most productive ever. Every intraday timing window except the noon hour probed its prior timing window’s low. Until the final hour, which only ranged relatively narrowly sideways.

That second timing window’s exception isn’t common, but it’s not unusual. The next session then tends to compensate for the missing fresh low by gapping down under the prior session’s lows. That would confirm both the session-long decline, and the Ascending Triangle’s false break. Oversold RSIs at Thursday’s low would be neutralized, and oversold RSIs at the Triangle’s low would be in-play.

Thursday morning’s gap down also served as proxy to trigger a bearish WedEX. Its influence would be relevant Friday afternoon. Uh-oh…

Friday is October 19, which is the anniversary of the 1987 “Black Monday” crash. Friday, October 16, 1987, was also pretty ugly — down an almost unheard of 108 points. The week had been pretty ugly, too. And it was a fairly fresh decline.

Similarities to current price action abound. There’s no perfect algorithm, only common principles, and they’re all here. So, trending down sharply again into the weekend — back to last week’s lows — would be extra vulnerable to extending down sharply coming out of the weekend. But only ranging sideways Friday would still be vulnerable.

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