Market Wrap (recording & summary)

Tuesday’s open gapped down from Friday’s 2776.00-2777.00 close, but only to test its 2766.50 last relative low. Immediately reacting up filled the gap back to Friday’s close. The bias environment exit converted the morning’s recovery into a new rally leg that fulfilled its 2784.00 objective at noon. Higher highs into the final hour at 2787.50 gained no traction, and the balance of the session dipped back down to unchanged through the futures close.

The cash session close and 3 minutes prior were both testing 2779.00-2780.00. That’s not deep enough soon enough to be confident that Tuesday failed to produce a second consecutive higher close. And that keeps alive Friday’s close above 2751.00/2757.00 to invalidate the two-month old rally still being only a temporary correction.

Just closing above 2751.00/2757.00 would have sufficed, had Tuesday not also probed fresh highs. That raised the burden of proof for a confirmation to close positive. Which wasn’t the most credible. So, gapping down or exiting a timing window back under Tuesday morning’s 2766.00 low would invalidate the confirmation. Otherwise, the rally’s next objective would be new highs — albeit not at all protected from beginning a corrective pullback.

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