Market Wrap (recording & summary)

Wednesday morning’s drop to 2375.50 had never actually printed intraday during the current rally leg. Last Tuesday’s 2378.50 open had gapped 3 points above it, after closing 5 points under it. So, Wednesday’s low was the lowest print in more than a week. Last Tuesday’s 2378.50 open had since served several times as the range’s low.

Ongoing liquidity challenges had already made any probe of fresh lows likely to recover. In fact, it was recovered ahead of Wednesday afternoon’s FOMC policy statement. Oversold RSIs at the morning’s 2375.50 low make its retest likely. Reaction to the news was a 3-point surge to 2384.00, which the balance of the session only fluctuated around instead of extending, so Wednesday’s low could still be tested Thursday.

Closing Wednesday above 2388.00 would have sealed a bottom. Gapping up above it Thursday would still be credible for extending higher. But anything shallower remains vulnerable to probing fresh lows before the rally to new highs can resume.

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

Monitor overnight Globex trading in the chaRTroom here.