Market Wrap (recording & summary)

Friday’s bullish Globex-flip setup was influential, but only to preventing a reversal down. Post-open action ranged relatively narrowly sideways. A very last-minute surge did probe fresh highs, but that was too late to ensure the Globex-flip setup would extend through the following morning. Meanwhile, the very last-minute surge invalidated the bearish WedEX. I would still give sellers a benefit of the doubt if Monday’s open were to gap down deeply enough.

How deep is deep enough? Back under Wednesday’s 2762.00 prior highs would form an Island out of Friday’s range. Gapping down under at least 2757.00— if not also under 2751.00 — could reject Friday’s close above them and prevent a second consecutive confirming close, keeping alive the current bear market rally. Friday’s underperformance by NDX and outperformance by the Dow makes me very suspicious that a bigger rally leg is only now getting underway.

Otherwise, a fresh trend extreme close on expirations doesn’t often reverse the trend. And a fresh trend extreme close on Fridays requires an eventual higher close, regardless of any interim dip. Regardless, the three-day holiday weekend is not global, so there’s no assurance of greeting Tuesday’s open with only little change.

Details and other markets coverage are discussed in the post-market Wrap recording here.
There is NO Saturday Review this weekend. Chartroom re-opens at 6 ET Sunday.