Market Wrap (recording & summary)

Extending the rally to its next higher objective at 2687.00 Wednesday would largely depend upon unbridled optimism. This was in contrast to the prior session, whose unbridled optimism only inhibited buyers from reinforcing the move, and attracted counter-trend sellers. Attacking the 2678.00 prior high to within 3 points was retraced to 2661.50 support, and then recovered to trend — more like trudge — higher. The 2687.00 target was met to within 3 ticks and its attraction was neutralized.

Breaking back under the 2681.00 bias-up signal during the bias-up environment extended down to its 2658.25 likely target as the bias environment began lapsing. Finally breaking lower as the proxy window lapsed extended down to the next lower potential target at 2650.50. None of which would have been likely had the bias-up target not been neutralized first. Still, retracing 2681.00 is likelier than not.

The rally’s next objectives would be 2702.50 and 2725.25. Dipping deeper overnight probably must recover before the open for the rally to extend higher. Otherwise, while not necessarily a striaght shot down, the next lower attraction at 2620.00 probably shouldn’t be revisited unless the intent were to resume the decline.

NOTE: Coverage will roll forward at Thursday’s open to the Mar (H) 2019 contract, which trades at a 4-point premium to Dec (Z) 2018.

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