Market Wrap (recording & summary)

SPECIAL NOTE: IF YOU HAVEN’T YET, PLEASE TEST THE ADOBE CHARTROOM SOFTWARE FRIDAY NIGHT. Last-minute assistance won’t be available before the Saturday Review. I’ll have it available Friday night here. Thank you!

That was an impressive recovery overnight from Thursday night’s missile attack. Too bad. If the recovery couldn’t exceed its origin’s prior resistance (i.e. 2357.50), then it would have been better served by leaving something on the table to attract strong-handed intraday buyers.

The same applies to the afternoon’s surge. If not recovering 2357.50 in time to trigger its bias-up, then probing it later only reflected weak-handed sponsorship. As a corollary, the same applies to the balance of the afternoon bias environment, which wasted even more buying pressure just to hover above 2357.50. Breaking down 6 points under it to 2351.50 into the close reflected weak hands getting flat before the weekend.

That late drop came too late, itself, to be predictive. So long as the pattern remains under 2357.50 through relevant timing windows, the pattern remains vulnerable to capitulation. Strong-handed sellers may have launched such a drop already Friday, if not for the overnight plunge attracting weak-handed sellers ripe to be squeezed. We should know one way, or the other, at Monday’s open.

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