Market Wrap (recording & summary)

Was Friday’s bearish WedEX influential? The session contained a couple of productive downlegs. But the signal applies to the afternoon, and the afternoon’s downleg was largely retraced.

The morning had already trended down from 2352.00 to 2345.00. Bouncing reversed down suddenly at noon to attack the morning’s low. The noon hour’s exit broke sharply lower to touch the afternoon’s 2340.75 bias-down target. Pretty productive.

Bouncing to 2349.50 was triggered by news that tax reform is coming next week. That’s an artificial catalyst. And anyway, the bounce didn’t recover the noon hour’s high, so the intraday trend remained down. We’re assuming WedEX was mildly influential, which means that it should be very influential on Monday.

Friday’s drop retraced all of Thursday’s post-open gains. And since Friday’s low was at the obligatory support of Thursday’s 2341.00 gap open, the afternoon’s bounce is extra vulnerable to being retraced. Its break could open the floodgates. Meanwhile, the burden of proof is on the recovery to reassert itself.

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

REMINDER: This weekend’s Saturday Review begins at 9:30am ET — I’ll email its link to you early in the morning. See you there!