Market Wrap (recording & summary)

Despite backing off of its late 2794.50 high to 2792.00, Monday afternoon’s bounce had potential for extending to test 2798.00. It was probed by 1 point overnight and then retraced back down under 2794.50 at Tuesday’s open. A post-open collapse attacked 2783.00 but it recovered just as quickly.

Post-open volatility had developed entirely within Monday’s final hour range, suggesting it was only noise, and warning to be suspicious of trending attempts. The balance of the session ranged choppily, widening to 2788.00-2796.00 only briefly. A late blip-up above 2796.00 was reversed to close back down into negative territory at the 2790.00 cash session close, and futures slid another point.

Although not required or even very likely, it’s a little surprising that Tuesday didn’t at least attack 2803.00-2805.00. Sellers hadn’t exploited the post-open collapse, and intraday opportunities to decline were held, as if stronger-handed sellers are still higher. Even the late 7-1/2 point collapse remained within the range.

The pattern still has no attractions or resolution requirements, whether in terms of price or time. Continue being cautious with entries and sizing. Wednesday’s ADP and EIA should enhance volatility, but we’ll need more evidence of trending.

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