Market Wrap (recording & summary)

I wasn’t interested in being a seller when the market was indicated to open 3 points above its 2893.00 low. But a late break slid sharply to greet the open at 2885.00-2887.00. It continued sliding through the open to 2880.00. A post-open dip would have been more attractive to buy than to sell, for the outstanding attraction back up to 2902.00. But the only bounce got up to 2891.00 during the noon hour. And it was reversed back down to fresh lows attacking 2877.00.

The afternoon’s reversal back down never confirmed that sellers were gaining traction for their efforts, because the bias environment wasn’t probed when it mattered — only exiting the bias environment under the noon hour’s low, but not at the final hour’s entry and the proxy window. Delaying the pre-open break lower until so close to the open reflects weak-handed sponsorship.

That doesn’t mean the drop can’t extend lower, or that momentum will reverse up by default. Not even after the interim dips’ lower and lower lows each reacted back into the bias environment’s range, none of which recovered during a relevant timing window.

Pre-open ECB events and the afternoon’s FOMC Minutes are likely catalysts Wednesday for volatility and choppiness. Already trending up at Wednesday’s open would be likely to extend higher morning. Extending higher would be likely to visit 2902.00, and nothing prevents reversing it back down. Meanwhile, already extending down at Wednesday’s open could extend down to 2861.00.

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