Market Wrap (recording & summary)

Perhaps it was just defensive posturing ahead of Tuesday morning’s Fed Chair Senate testimony. Monday’s slide from its 2814.00 morning high had extended overnight down to 2783.25.

The relatively deep decline didn’t prevent recovering to greet the open back up at 2791.50 support. It was also the morning’s bias-down signal, and holding its support put into play at test of 2802.00. The first attack stopped 2 points short before Powell comments seemed to trigger a retest of 2791.50 by 2 points. But there was just enough time and plenty of volatility to test the objective up to 2803.25 by noon.

A mid-day dip ranged narrowly throughout the afternoon’s no-bias environment. The window’s exit rallied back to morning highs, but only back to morning highs. Tuesday’s last half-hour retraced the mid-day lows, and lower as futures settled back at 2791.50 support.

Just as the afternoon recovery’s steepness left it vulnerable to any hesitation, the rejection’s steepness now leaves it vulnerable to another recovery. A retest of Monday night’s 2783.25 low can’t be dismissed, since its recovery’s ultimate productivity only fluctuated around unchanged. Otherwise, not already probing lower at Wednesday’s open probably will have begun recovering Tuesday’s late drop.

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