Market Wrap (recording & summary)

Monday night’s rally had formed a “new Globex trend extreme” at 2853.00 and gapped up to 2849.75. The balance of the morning ranged choppily sideways down to 2845.00. The bias environment lapsed by surging 15 points to attack 2859.00 as noon began.

Finally, some intraday trending. Apparently, trending by the same intraday sponsorship that had failed to uphold Monday morning’s probe above Friday’s highs. The rally was already fading to 2853.00 when a China trade headline triggered a collapse to 2841.50. A bounce to 2852.00 returned to session lows as the bias environment began lapsing.

Sellers had not gained traction through the bias environment exit and final hour’s entry. But the 3:10-3:20 proxy window trended down to fresh session lows, a combination that usually produces dramatic follow-through at some point before the close. In fact, the position-squaring window quickly tested 2829.00. The close bounced back up to 2840.00.

Tuesday’s gap up was filled by the China trade headline’s reaction, after barely touching Monday’s range. It is not “unfinished business.” More significant may be the two consecutive sessions of distribution ahead of Wednesday afternoon’s FOMC events, which suggests a very opportunistic trading environment.

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