Market Wrap (recording & summary)

Was there a shortage of catalysts Tuesday for trending? Not early in the morning. Gapping up held a test of 2388.00, and plunged 7 points to test 2382.00. Was there no shortage of catalysts for being range bound? The balance of the session fluctuated in a 5-1/2 point range between the two early extremes.

We discussed this possibility during this weekend’s Saturday Review. Enough exchanges are closed globally to constrain liquidity, which inhibits trending. Quarterly earnings coming from AAPL didn’t prevent and afternoon slide, but probably inhibited it from breaking the morning’s lows.

Bouncing into the close stopped short of touching the noon hour’s high. That high had stopped short of touching the open’s high. And the afternoon’s interim dip had stopped short of touching the morning’s low. The resulting pattern is a Symmetrical Triangle, which depicts equally-matched opponents, and the potential for a false break before reversing more substantially in the opposite direction.

Gapping up high enough could break free from that attraction. Meanwhile, closing again under 2388.00 has kept the door open to at least probing fresh lows.

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

Monitor overnight Globex trading in the chaRTroom here.