Market Wrap (recording & summary)

The week began with setup examples from its opening tick. Sunday night’s opening tick, which duplicated the prior Sunday’s gap up above all prior highs. That alone would suggest its resolution will be different, since sequential similar setups resolve differently. But they even had the same catalyst. So, the night gradually pulled back from attacking 2820.00 to testing 2810.00.

Another example came from Friday’s attack on last Monday’s 2814.00 high. Attacking it up to 2812.50 could have sufficed, but the session reversed down sharply. The market tends to compensate for delays, so retesting 2814.00 became likely to be probed up to 2817.50. Which Monday’s open twice tested and held.

Like last Monday’s gap up above all prior highs, this week’s 2815.50 opening print would want to be retested from below. Last week’s interim dip took control of the week. Monday’s dip took about 20 minutes. Neutralizing its attraction along with the morning’s 2817.50 bias-up target opened a vulnerability to reversing down.

I had preferred waiting for the overnight high’s retest before considering a sell signal, but no “unfinished business” above made the potential whipsaw worthwhile. And there was only one whipsaw before collapsing from 2810.00 to 2768.00. The afternoon trended back up, retracing half of the post-open drop to 2792.00. Monday’s range encompassed all of the prior 6 sessions, proving this rally has been encountering thin air. Extending any higher overnight would be vulnerable to greeting Tuesday’s open back in decline.

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