Market Wrap (recording & summary)

Wednesday’s 2614.75 gap up was just above Tuesday’s high and quickly extended another 9 points. Price only ranged choppily sideways into the afternoon’s bias environment, which triggered noN-bias. Not a lot of upside sponsorship, but no meaningful downside sponsorship. Nothing to prevent fresh highs from neutralizing the afternoon’s 2626.75 bias-up target to within 3 ticks.

That fresh high behaved as if it were fulfilling buying pressure, as the last 60-90 minutes trended back down to 2615.25 into the cash session close. Futures extended down to 2612.50.

Futures settled 1-2 points back under Tuesday’s high. Dipping that deeply any earlier wouldn’t have confirmed Tuesday’s breakout session, which now requires an eventual third higher close —  an eventual third higher close that would presumably be above 2626.00, and put into play the rally’s next higher objective at 2656.00.

None of which requires extending the rally without delay. Touching 2626.00 without closing above it reflects some weakness in the breakout’s sponsorship. And Wednesday’s final hour rejected the opportunity to signal buyers were gaining traction. A temporary detour down Thursday isn’t required, but it wouldn’t be surprising.

Meanwhile, the confirmed breakout also qualifies as a bullish WedEX. Its influence applies to Friday afternoon (and Monday morning), and doesn’t prevent a temporary detour down on Thursday. Gapping down Thursday under the ~2598.00 prior highs would be difficult and unusual, so it would be unlikely, but it would serve by proxy to invert the WedEX.

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