Market Wrap (recording & summary)

Tuesday gapped up thanks to an overnight rally. That rally had begun late enough to have been single-minded and relentless and prone to the open reversing. And that rally had begun early enough not to have been the product of weak-handed latecomers that patient sellers the open often easily absorbs. It was the Goldilocks rally. It was just right.

Which was wrong.

The gap to 2397.75 didn’t extend immediately. Not until after the opening 15 minutes of volatility had lapsed, when it surged to 2400.00 into the top of the hour. And held. The morning’s bias environment then slid to unchanged. The noon hour slid, too, probing negative territory, which the last half hour’s slide probed 1 point under Monday’s 2389.75 low.

That’s 11 points intraday high to low. A lot of selling pressure to expend through multiple timing windows, just to travel from one end of the range to the other. Sunday night’s open wasn’t the most inflated balloon, and its reaction down has been relatively shallow. Now a lot of ballast has been dumped.

Breaking lower at Wednesday’s open or overnight would still be credible for extending much more substantially intraday.  Otherwise, could new highs finally extend Wednesday?

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

Monitor overnight Globex trading in the chaRTroom here.