Market Wrap (recording & summary)

Wednesday’s open was greeted unchanged from Tuesday’s 2385.00 close. Trending narrowly avoided triggering the 2388.00 bias-up signal. But the bias environment firmed above it anyway. And then surged to test the 2394.00 bias-up target. It was all retraced by a knee-jerk reaction to news. Until the afternoon bias-up signal triggered, and its target was met to within 3 ticks. That also reacted down on another headline.

Headlines trigger weak-handed sponsorship. Whether coinciding with resistance, or leveraging a fulfilled target, the reaction is artificial. By preventing an organic reversal, its reversal is only temporary. Which probably delayed truly punishing the morning’s doomed rally. Breaking lower through the position-squaring window finally probed under the morning’s lows, and into negative territory.

Thursday may yet extend the reversal down. Two consecutive closes above 2375.00 have put into play new highs, so the rally can rest on its laurels. Briefly. There is no shortage of catalysts — Thursday’s econ calendar is busy and high-profile, albeit not very influential after the pre-open Durable Goods. The quarterly earnings tap is still flowing.

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

Monitor overnight Globex trading in the chaRTroom here.