Market Wrap (recording & summary)

A funny thing happened Thursday on the way to gapping up above Wednesday’s 2762.00 high. An earlier overnight probe above it had reacted down, and was recovered up to 2760.00, when headlines triggered a plunge to 2736.50.

Wednesday’s close had overlapped its open, which often appears at trend extremes. Extending down post-open to 2730.25 created an anchor that suggests momentum has reversed down. None of which prevented rallying up to 2755.25 through the noon hour. But the anchor’s position of weakness should doom the bounce to failure.

The afternoon bias environment didn’t extend the rally at all. A late break lower fell to 2744.50 at the cash session close and 2742.50 into the futures close. The anchor at Thursday’s low has yet to be retested, and should be probed by a new downleg to compensate for the delay.

Otherwise, having trended down into Thursday’s close, gapping up above its 2754.50 bias environment high could form a session-long rally. The final hour’s blip-up to a higher high would have to be dismissed — which I’m willing to do, since it was triggered by a headline. Extending higher Friday morning would also raise suspicions about the WedEX signal’s reversal to bearish.

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