Market Wrap (recording & summary)

Friday and Monday are almost mirror images of each other. Each gapped either up or down, respectively. Each extended intraday in their gaps’ direction. Each returned to their opening prints, not gaining any traction for their intraday efforts. And each tested an attraction at its intraday extreme.

Monday’s 2638.50 open was overlapped at the close, after extending intraday down to 2622.25 and recovering temporarily up to 2642.75. Monday’s lows held the afternoon’s 2622.75 bias-down signal and the ongoing relevant 2625.00.

The island-like patterns formed Friday and Monday aren’t actually Islands, because they developed within prior recent price action. Neither is a reversal pattern, and neither requires being retested if it produces a reversal. So, Friday’s range doesn’t require being retested, yet…

Almost any overnight strength is likely to recover back into Friday’s range. That would mean back above 2656.00, and closing above 2666.00 would reinstate upside momentum. Similarly, almost any weakness — overnight or through Tuesday’s open — would be likely to resume the decline through 2625.00. And under 2625.00 lies an air pocket likely targeting 2605.00. Perhaps even deeper to compensate for the delay in breaking under 2625.00

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