Market Wrap (recording & summary)

Closing above Tuesday’s opening high had indicated sellers were done. At least, the most recent sponsorship, responsible for the overnight and post-open plunges. Although the decline was likely to resume with new sponsorship, that’s usually delayed by a bounce that seeks out those new sellers at higher levels. And that usually persists into the 1-3 following sessions.

But Tuesday’s rally was never extended. The afternoon’s 2754.75 high had reacted down to 2738.50 into the close. Initial overnight ranging never recovered it.

A deeper overnight dip to 2719.75 was recovered back above 2735.50 to repeat Tuesday’s signal that sellers were done. Again. But its bounce to 2742.00 was reversing down through the open. Last chance pullback limits at 2735.50, 2721.00-2723.25, 2715.50 — and even 2701.50 — gradually failed. Always a possibility in every scenario, the invalidation template made a rare appearance.

Wednesday’s drop neutralized “unfinished business” at the oversold RSIs at Tuesday’s 2692.25 low. Tuesday’s bounce neutralized the normal attraction to “higher prior lows” at 2751.00-2752.50 from Monday. Oversold RSIs at Wednesday’s late 2652.25 low are now outstanding.

The next lower objectives that we’ve been discussing at 2671.00 and 2663.75 were met and exceeded. A 20-point bounce after the cash session close held its test of 2671.00 as resistance. The next lower objective in-play is 2637.25. Oversold RSIs at the close made a hold-short compelling.

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