Market Wrap (recording & summary)

Don your protective gear.

This week’s unstable rally had been retraced already Tuesday back down to Monday’s 2331.00 open. That had retraced the 2347.00 overnight high, which was probed Wednesday morning. Despite the interim pullback having been productive — i.e. producing a new high — the interim pullback’s low and Monday’s open were retested again Wednesday afternoon.

There is no bullish reason for that extra test. The interim low is likely to break lower.

The retest of the interim low was itself approached bearishly, in at least two ways. First, sellers gained traction for their efforts by exiting the bias environment under the noon hour’s low, and entering the final hour under the bias environment’s low. Second, the decline was a relentless trend, an ongoing series of lower lows and lower highs. It was not at all capitulative or aggressive, which could have been bullish from a contrarian perspective.

Meanwhile on a separate track, WedEX has triggered passively bearish. Bearish, due to several conditions. Passively, due to one of those bells (or whistles, I forget which) of the morning’s failed probe above prior highs. Thank “Wreversal Wednesday” for that. The break was almost actively bearish, as I describe in the Market Wrap video.

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

Monitor overnight Globex trading in the chaRTroom here.