Market Wrap (recording & summary)

Monday’s binary template allowed a bottom to form from probing under October’s low, but Monday afternoon’s rally stopped short of signaling momentum had reversed up. A second-day confirmation was acceptable, even if that included a post-open dip of backing-and-filling through the morning. Its only condition was to keep alive excessive optimism, preferably by holding above Monday’s range.

Coinciding with more rhetoric than actual developments in the China trade war, Monday’s range was probed in the morning. A less optimal knee-jerk reaction down failed only dug deeper into the afternoon, probing under overnight lows. The late bounce back up through Monday’s late high came early enough to not be labeled a correction —  only to dip back down into the close  and put the burden of proof back on buyers.

The binary template is viewing Monday’s afternoon-overnight bounce as a correction before resuming the decline. That’s a big correction. Oversold RSIs outstanding from Monday’s low meanwhile welcome a retest. And there’s no bullish reason to retest that chart point. There’s always a path higher, but anything short of another overnight rally would be a less than optimal start.

Details and other markets coverage are discussed in the post-market Wrap recording here, which was held an hour before the close.
Monitor overnight Globex trading in the chaRTroom here.