Market Wrap (recording & summary)

SPECIAL PROGRAMMING NOTE: I WILL BE UNAVAILABLE 10:30-2:30 ET (after the market’s first hour, until the afternoon bias environment begins lapsing). The chaRTroom will remain open throughout.

Largely recovering Tuesday morning’s 18-point plunge has the same two or three meanings the same setup had on Monday. The drop was the product of weak-handed sellers, nothing prevents probing even lower intraday again, and probing lower could attract strong-handed sellers anyway.

The strong-handed / weak-handed struggle can cut either way. It stops being bottoming, and starts rolling over, if there’s rotation between the sponsorship.

For example, Tuesday’s drop to 2333.25 recovered 2343.50 too late to be the product of strong hands. The next threshold of recovery at 2349.00 was met, but not exceeded. And not for lack of opportunity — it was tested before entering the afternoon bias environment and coming out of it, then again into the close.

So, sellers haven’t definitively retaken control. The intraday probe under the 2345.00 area now requires buyers to leverage that hesitation, definitively themselves by greeting Wednesday’s open in rally mode. The setup is similar to what Monday’s close left for Tuesday’s open, but no longer optional — any delay creates large vacuum that would require 2321.00 to plug it.

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

Monitor overnight Globex trading in the chaRTroom here.