Market Wrap (recording & summary)

Thursday night’s rally deposited the market at the door of invalidating the bearish Globex-flip setup, but only stumbled through. I needed either a gap up above 2788.00 or simply exiting the open above 2784.50 to signal the Globex-flip wouldn’t be influential. Neither was recovered until too late to be predictive. And they were recovered on the way to fresh recovery highs at 2794.50.

Fresh intraday recovery highs. Wednesday night’s 2798.00 “new Globex trend extreme” is higher, which disqualifies Friday’s close from being a new trend extreme. That would have required an eventual higher close. But having recovered into the orbit of 2798.00 for the first time since already leaving it before Thursday’s open, its retest should be imminent.

Meanwhile, Thursday’s Isolation setup is in jeopardy. It had formed by not probing back above Wednesday’s high intraday. It would remain intact by not closing back above Wednesday’s high — which Friday did. The close’s probe above Wednesday’s high began after entering the position-squaring window, so it could be credibly reinstated by trending back down through Monday morning, perhaps attracted to oversold RSIs at Friday afternoon’s 2781.25 low

Details and other markets coverage are discussed in the post-market Wrap recording here.
JOIN US AT 9:30 ET FOR THIS WEEKEND’S SATURDAY REVIEW.