Market Wrap (recording & summary)

Tuesday’s 2654.00 opening print gapped down 17 points from Friday’s close. The opening 15 minutes of volatility ranged flat-to-lower. Only then did sellers finally do what they’d only threatened since Sunday night’s open — actually touching Friday’s 2649.00 low. The relentless overnight slide didn’t find reinforcements immediately, but they arrived before a bounce could develop, which sufficed.

Meanwhile, opening back under 2656.00 allowed a close under 2656.00 to reject Friday’s close above 2656.00, and the rally’s next higher objective. This doesn’t itself reverse the trend down, so much as it opens the door to a reversal signal. Which is formed by Tuesday’s sudden, steep and substantial reversal from the prior session’s fresh recovery high. It’s not the intraday reversal we’ve been anticipating, but it qualifies.

The reversal still needs to be confirmed by a second consecutive lower close on Wednesday. That could be helped by extending to the next lower target at 2605.00 which was left outstanding by Tuesday’s 2616.50 low. But that’s still 25 points short of a lower low to signal a new downtrend underway. Bouncing first on Wednesday could test 2656.00-2666.00 before suggesting that Tuesday’s drop was only a detour.

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