Market Wrap (recording & summary)

HAVE A MERRY CHRISTMAS!

Reminder: I’m away from the screens Wednesday morning, but chaRTroom will be open.

Monday’s early hours was the rare Christmas Eve session worth trading. Two signaled downlegs were very productive, and the next lower objective started being tested.

Sunday night’s rally up to 2434.50 reflected optimism, but not the same “hope springs eternal” optimism as last week. It was more a relief that Sunday night’s gap down had been relatively shallow, and relatively brief. Which is no more valid or credible for reversing momentum up. So momentum reversed back down, sharply, probing the Globex open’s 2401.00 low by 10 points.

The post-open drop to 2368.00 was recovered entirely to a fresh post-open high at 2412.50, but fresh lows were being attacked by noon. And then extended through the close, probing the objective’s 2345.00 lower-end down to 2340.50.

Fulfilling the decline’s next lower objective doesn’t equate to being a buy signal. It doesn’t even necessarily mean the decline is slowing its pace. Europe has yet to process this drop — the last we saw of them was retracing a relief rally. Wednesday’s chances are almost even for being either a capitulation session, or another hopeful bounce.

Details and other markets coverage are discussed in the post-market Wrap recording here.
chaRTroom will re-open Christmas night with Globex at 6:00 PM ET.