Market Wrap (recording & summary)

Tuesday’s pattern never broke its series of lower lows and lower highs, i.e. downtrend. Two attempts were made, at the noon hours entry and then at the afternoon bias environments exit. Both resolved down into fresh session lows.

Noon’s reversal attempt would have been doomed eventually, due to oversold RSIs at the morning’s low requiring an eventual retest. The afternoon’s reversal attempt would have been substantial, had it made itself obvious by the 3:10-3:20 proxy window. Failing to exploit that all but required fresh session lows.

Futures ultimately recovered back up to 2342.00, not closing under the decline’s objective. Recovering it decisively would have been a reason to suspect Tuesday’s drop is temporary. There’s also the anchor at the open’s high, and Monday’s unfinished business above at 2380.00.

Could this be a Wreversal Wednesday? Often, the path up must first extend down. Extending down a little could bottom at 2335.50. Extending down a lot could reach 2327.00 or 2317.00. Two Fed speakers this evening might try talking up the market, or might facilitate testing lower targets overnight. Regardless, gapping up above Tuesday afternoon’s 2349.50 high after trending trended down into its close could form a “session-long rally” setup.

Details and other markets coverage are discussed in the post-market Wrap recording here.

Monitor overnight Globex trading in the chaRTroom here.