Market Wrap (recording & summary)

Is it over? At least, for now, has the 2-day 116-point drop found a low? That’s 1,100 Dow points, all from Friday’s noon hour high to Tuesday afternoon’s retest of the morning’s lows. NDX didn’t retest its morning’s lows, so could the Tech wrecks be done?

Thanksgiving’s seasonal bullishness tends to step in by Wednesday. Often, that follows a downleg to some degree that got rid of its selling pressure just before then. Did this year’s jumbo-sized drop break through the normal rubber band stretch, and break the band’s elasticity altogether?

Closing back above the decline’s next two lower targets at 2635.00 and 2654.00 would have at least robbed sellers of their traction. Both were tested Tuesday morning. Both were recovered before Tuesday’s noon hour. And both almost failed into Tuesday’s close. Both, almost, because 2654.00 wasn’t recovered, while the afternoon range was still utilizing 2635.00 as support.

Now, trying to rally would face resistance at 2678.00. Its immediate recovery Wednesday could isolate Tuesday’s session and allow a bigger bounce. But reversing the trend up must recover Monday afternoon’s 2703.50 high — it’s likely to hold any test through the close, unless gapping above it which isn’t likely.

Resuming the decline Wednesday would next target the 2603.00 prior low. A “V” bottom there would could bounce into the holiday, but would be doomed to failure. A more considered and extensive retest would probably hold, but could still resolve down.

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