Market Wrap (recording & summary)

Friday’s “ineffectual optimism” setup, for appearing ahead of the weekend, had made Monday’s open likely either to gap up or to gap down. And it didn’t gap down. In fact, Sunday night’s open had already gapped up and extended through the morning’s bias-up parameters. Hovering at its highs into the open without bothering to correct reflected more optimism lying ahead. And even the “Dry Cleaners morning” setup didn’t prevent resolving up into the afternoon.

The reward for Friday’s pattern resolving up was to retest two-week old highs. By proxy, gap-fill, or actually probing room for noise would suffice, and the rally neutralized it all. Room for noise up to 2869.00 was met and held through the afternoon bias environment. Surging after the position-squaring window up to 2873.50 still found time to retrace entirely back down to 2866.50, so 2869.00 held. Otherwise, its recovery would essentially put into play 2902.00.

So, still overlapping the upper-end of the two-week old distributive pattern raises the question, where’s the distribution? Was it the cause of Monday’s restrained rally? Or, has strong-handed distribution suddenly become so universally patient that another upleg is underway? If the latter, then its upleg should be steep. If the former, then another second-day reversal like this area’s last test should be obvious by noon Tuesday.

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