Market Wrap (recording & summary)

PROGRAMMING NOTE: Tuesday night’s test of the Adobe Connect meeting platform went very well. This is our top pick for replacing the current room software. CLICK HERE for a 3-minute video I made of tips to use it. Its login link is below…

Wednesday afternoon’s reaction down from the morning’s rally to 2375.00 was deeper than necessary. It managed to trigger a sell signal and then touch its 2365.00 target. Having satisfied sellers, a complete recovery was likely, if not a fresh high. But the complete recovery still stopped 1 tick short of the high. Overbought RSIs were left outstanding.

Reaction to the FOMC Minutes was only briefly pessimistic. Initially. Then eventually very bearish as the reaction down cascaded sharply lower. Plunge is more apt. Sellers gained traction through the final hour entry and proxy window both probing their prior timing window lows. Tuesday morning’s 2346.50 low was probed.

There is still some potential for recovery. the probe under Tuesday morning’s low held a test of its “unfinished business below” at 2344.75. And Wednesday’s late structure allows gapping up to and through 2357.50 to reverse momentum up, even if only for the near-term.

But the drop’s traction does suggest probing lower anyway. And testing 2369.00 intraday without closing above it makes its reaction vulnerable to probing last week’s lows down to 2311.00. That would be another fresh low off of another lower high — make or break between recovering to new highs, or rolling over the edge.

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

Monitor overnight Globex trading in the ADOBE CONNECT chaRTroom here.