Market Wrap (recording & summary)

Tuesday morning’s first reaction down was normal. The gap back up to Monday’s 2345.00 close was the opening surge’s objective, and it had just been filled to within 2-3 ticks. The reaction down was excessive, all the way back to the morning’s 2337.75 bias-down signal that already had held a test to avoid triggering. It held again. Its offsetting test of 2347.25 was in-play.

Tuesday morning’s second reaction down wasn’t abnormal. It originated precisely as the bias environment began lapsing at 2341.00. And it extended precisely into noon. It was also excessive, and that made it unusual. But still not abnormal, ending almost the same minute as testing the morning’s 2332.50 bias-down target (albeit by 2 points).

Trending back up through the noon hour and afternoon bias environment recovered to test 2341.00. Actually recovering 2341.00 into the final hour or proxy window would have been bullish. More bullish than not bothering to test 2341.00 — twice — without even closing above it. Then the unusual, not abnormal, intraday decline could have been dismissed. Unfinished business above could have been addressed.

But the afternoon’s recovery was a little slow, especially in not recovering 2337.75 earlier, and in holding a test of 2341.00 later. That means keeping the door open to another downleg, which wouldn’t be so unusual at this stage. And that also means tolerating little or no delay before extending the recovery Wednesday, and preferably extending it relentlessly.

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

Monitor overnight Globex trading in the chaRTroom here.