Market Wrap (recording & summary)

Two consecutive sessions spent downtrending in negative territory were likely to bleed into a third. Monday fulfilled the setup, despite having rallied overnight to the morning’s 2795.50 bias-up target. Opening back down at its 2775.00 bias-down signal was only the beginning of a collapse that erased the last of last week’s rally. Not just Wednesday’s election results surge, but also the Tuesday and Monday rallies preceding it down to 2722.00.

Those two days were also consecutive sessions spent uptrending in positive territory, which bled into a third — Wednesday’s election results surge. Their different context allowed Monday’s initial selling to bottom, and for its recovery to be rewarded by retesting Wednesday’s high. Which is still possible, to the degree that Monday’s decline is rejected.

Just recovering interim resistance at 2739.00-2743.00 would be a start. Leapfrogging over it at Tuesday’s open would be the quickest signal of rejecting Monday’s decline, especially maintaining and extending a gap up to and or through Monday afternoon’s 2752.00 high. Meanwhile, extending this leg could reach 2786.00 before its next opportunity to try bottoming again.

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