Market Wrap (recording & summary)

Tuesday’s gap down held the bias-down signal to create an attraction above. After absorbing the anxiousness of an event in London, a steep rally attacked the upside attraction. But the 2374.75 peak stopped short of its 2377.50 objective before correcting. And correcting. And correcting.

A pullback to 2370.75 could have ended the correction, but it was probed down to 2365.00 when the bias environment began lapsing. The balance of the afternoon ranged sideways up to 2372.00. Until the last half-hour, which slid to the next lower objective at 2364.00-2365.00.

A lot of time has been spent in decline since last Wednesday’s high. And thanks to the height of that high, a lot of selling pressure has been expended only to test the prior week’s “lower prior highs.”

Of course, that was true enough after Monday’s close, but the selling didn’t stop. And Monday’s close back above the morning’s high didn’t prevent extending down Tuesday. Gapping up is still a credible path higher — and much likelier Wednesday than it was Monday, since “unfinished business” is no longer below. But if the decline is attracting new sponsorship Wednesday, then it should break quickly under 2359.50.

Details and other markets coverage are discussed in the post-market Wrap recording here.

Monitor overnight Globex trading in the chaRTroom here.