Market Wrap (recording & summary)

Thursday’s sellers had gained traction, suggesting that Friday morning would probe lower. But Friday morning gapped up and extended higher, triggering the 2346.75 bias-up and fulfilling its 2352.25 target. Nevertheless, not gapping up Friday above Thursday afternoon’s 2352.25 high had itself suggested a repeat of Thursday morning’s failed rally.

In fact, Friday morning’s bounce peaked at almost the same time and resolved down to fresh session lows, as did Thursday’s. Both drops gained traction, albeit differently. One difference is that Friday’s drop left “unfinished business above” at the afternoon’s 2345.50 bias-down signal. Probing under it prematurely was “no-bias trending” that required being retraced.

And it was retraced, after the drop had extended to within 3 ticks of the unfinished business below at 2331.00. Then another headline leveraged the position-squaring window, triggering another knee-jerk reaction up. Its 13-point surge probed 2345.50 by almost 2 points  Unfinished business above AND below was neutralized within minutes of each other.

The balance of the session ranged choppily sideways. But it left an interesting pattern behind, projecting interesting action ahead. We’ll review it in detail at this weekend’s Saturday Review.

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