Market Wrap (recording & summary)

Reaction to Tuesday night’s election results fostered a sizeable overnight rally that greeted Wednesday’s open at 2779.25. Potential for a short-squeeze was fulfilled immediately by surging to pierce the 2787.00 pre-open high by 3 ticks. The squeeze was quickly retraced almost entirely back down to its 2773.50 pre-open low.

But no lower.

That was not the final opportunity to reverse the intraday trend down, but it was pretty much the last opportunity to marginalize sellers for the day. Which they were, anyway, as the rally extended relentlessly to 2815.00.

Interestingly, that’s essentially — a couple of points higher, actually — the initial bounce limit for extending the corrective leg that otherwise should have held 2787.00. Its next higher objective is the 2850.00 area.

Ending the corrective bounce without extending any higher would all but require rejecting Wednesday’s leg without any further delay. Gapping back down under the afternoon’s 2793.50 bias environment low would be credible. Otherwise, almost any shallower or later weakness Thursday would more likely be only backing-and-filling before resuming the rally.

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