Market Wrap (recording & summary)

Did it, or didn’t it? Did closing back above Tuesday’s opening highs create a position of strength?

That would enable recovering from dipping immediately on Wednesday, if not already backing-and-filling overnight. Likely objectives would be 2735.50, 2721.00-2723.25, 2715.50 or even down to 2701.50. Any lower would start to signal that Tuesday’s intraday bounce was self-fulfilling.

The position of strength could instead resume the rally overnight to test Monday afternoon’s 2766.00 highs. At that point, the open can either extend higher or react down to indicate whether the bounce was extending or done.

I wouldn’t expect the bounce to extend higher immediately, so testing 2766.00 at Wednesday’s open would be likely to reverse down. At least reversing down immediately overnight could satisfy selling pressure that is still very much intact, without yet resuming the decline.

The only other significant template — which is always a template — would be among the exceptions to the rule. Sure, closing back above the morning’s high, after trending down overnight and through the open, often delays the prior trend. But failing to hold support through relevant timing windows could find that Tuesday’s recovery attempt only attracted more sellers out of the woodwork.

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