Market Wrap (recording & summary)
Apparently, Tuesday morning’s rally sapped the market of a lot of energy. The afternoon ranged narrowly sideways, as did the overnight. The range expanded slightly Wednesday, but not to new highs. Wednesday’s three bullish factors are:
- An entire session without immediately retracing Tuesday morning’s rally helps to suggest the rally will resume. Immediately retracing the rally could have recovered, too, but less often. Meanwhile, a deeper retracement is still possible, but with a greater likelihood of recovering.
- Not even piercing a fresh high, if even touching a high, reflects pessimism. Ineffectual pessimism, for not having reversed down. Pessimism is potentially bullish from a contrarian perspective.
- Both bias-down signals held their tests to avoid triggering, which puts into play offsetting tests of their bias-up signals. In addition to Tuesday’s 2942.75 unfinished business, only Wednesday morning’s 2942.00 remains outstanding, since the afternoon’s 2937.50 bias-up signal was attacked to within 3 ticks by Wednesday’s late-afternoon high.
Perhaps anxiousness ahead of post-close earnings like FB, MSFT and TSLA prevented attracting strong-handed buyers to sponsor another upleg. The same influence could have prevented backing-and-filling deep enough to find strong-handed buyers below. It’s really irrelevant, other than to get the event(s) behind the market so its pattern can play out.
Details and other markets coverage are discussed in the post-market Wrap recording here.
Monitor overnight Globex trading in the chaRTroom here.