Market Wrap (recording & summary)

Globex gapped up to 2799.50 had extended only momentarily to 2803.50. Its retracement down to to 2794.50 was necessary to find sponsorship capable of trending to fresh highs. Monday’s 2808.00 open was no more eager to extend than was Sunday night’s gap up. It eventually probed higher to test its 2813.50 target, but the bias environment lapsed back under the open’s range. And that put into play a deeper pullback, still.

In fact, the highs reversal extended through the close to within 2 ticks of the 2794.50 Globex low. It already seemed disappointing to have retraced Sunday night’s open, despite having recovered Globex’s gap up and extended it higher both pre-open and post-open. Falling through the close isn’t surprising, but ONLY falling through the close would be.

Extending down overnight is necessary to reinstate the Isolation setup. It had required closing Monday back under 2790.75, but exiting Tuesday’s open under 2788.00 would suggest the interim rally was rejected. Otherwise, a new reversal setup would be needed. Meanwhile, Monday’s open gapped up above all prior highs, and would want to be retested from below to neutralize its attraction above.

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