Market Wrap (recording & summary)

Two pessimistic observations became three late Monday afternoon. First, the morning’s bounce had stopped pessimistically short of filling the gap back to Friday’s close. Next, two timing windows ranged flat-to-lower without actually breaking. Then, they did break lower, but several minutes before appropriate.

Pessimism, potentially bullish from a contrarian perspective. Unless exploited through a relevant timing window. Which Monday’s close tried to do, but failed — attacking the morning’s low to within 1 tick, but not probing lower.

A contrarian bullish template could still exploit the pessimism in one of two or three ways. Either by isolating a fresh low to the overnight that opens Tuesday back above Monday’s lows, or by gapping up above Monday’s highs. Quickly rejecting a post-open probe of fresh lows is also possible, but not likely.

A rally’s objectives would be Monday morning’s 2275.50 “unfinished business above,” and a new trend high close.

Otherwise, any other template essentially points down into Wednesday morning. Some point lower for longer. But any downdraft here is still considered to be only temporary.

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

Monitor overnight Globex trading in the chaRTroom here.