Market Wrap (recording & summary)

PROGRAMMING NOTE: There is NO Saturday Review this weekend.

The week began with a bang, and ended with a whimper. Gapping down to fresh pullback lows Monday, and probing lower intraday, had tested two critical levels. Both 2327.00 and 2317.00 held their test (the latter to within 3 ticks) before reversing to close back above 2331.00. The pullback had ended. That much we knew instantly.

Instantly extending Monday’s intraday recovery into a multi-session rally was not assured. And it developed despite bearish influences and attractions left outstanding below. Monday’s 2321.00 gap down will want to be filled eventually. Tuesday morning’s 2342.25 bias-up signal requires an eventual retest.

But Friday’s session hardly suggested an association with such volatility that recently preceded it. Thursday night’s slide was being reversed before the open, and then more so into the afternoon. All action developed at or between its bias signals. The afternoon bias environment’s drop was not credible for extending down for its no-bias timing, so it recovered. Temporarily, as a deeper drop into the close retested the open’s low, but held the range.

That was the week. Friday’s session may have been the week’s hallowest, if not also for the month. Now we have one week before end-o’quarter earnings start buffeting the opens, and inhibiting the closes. Price action during its last month struggled, suggesting that analysts weren’t awed upon checking in with their coverage. In fact, this past couple of week’s has already seen misses appearing. Example, Lululemon Athletica (LULU) plunging Thursday as its stores apparently have seen too few misses arriving. A week of similar higher-profile earnings news probably won’t attract stock buyers. Anticipation for that week can’t be very attractive, either.

But Friday’s whimper is obvious even without being juxtaposed against Monday’s bang. It was essentially an “inside day” and it is positioned at a multi-session recovery’s extreme. Presumably, there is still an objective or two outstanding above, else the conditions and attractions below would have produced a downside bang into the weekend. The question is in what order we’re about to see one more weak-handed optimistic surge ahead of earnings, and another defensive reaction down/

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

REPEATING: There is NO Saturday Review this weekend. Overnight Globex trading can be monitored Sunday night in the chaRTroom here.