Market Wrap (recording & summary)

Paraphrasing, “Behind every higher high there stands a gap up.” Lately, at least.

Tuesday’s gap up was the product of relentless overnight trending. Often enough, intraday reinforcements aren’t attracted to replace the relentless overnight trend’s retiring sponsorship. Similar to the overnight trend’s two higher highs that were retraced to their origins, Tuesday’s gap up to 2919.25 was retraced to pierce 1 tick under Monday’s 2910.00 close.

That was the minimum structural likelihood for a reversal. A calculable objective at 2908.50 was probed down to 2904.50 when plunging into the position-squaring window. Its reaction recovered to test Monday’s 2910.00 close — which was still being overlapped up to 2912.00 at the close. So, in addition to maintaining the pattern of selling intraday bounces and gaps up, overnight rally gained no traction for its effort.

Meanwhile, the Dow outperformed ES again overnight, extending its overnight rally to within one hour of the open, while ES continued ranging sideways. Dow also outperformed when the afternoon collapse barely pierced the morning’s low, while ES made decisively fresh session lows. However, NQs also outperformed both ES and the Dow, neither of which probed fresh post-open highs as did NQs. So, day-two of the comparison wasn’t equally bearish, but we’ll be extra interested on Wednesday ahead of this week’s expiration.

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