Monday”s open did exactly what

Monday”s open did exactly what on Saturday we described would keep the balance of the session under pressure. Trending up immediately from gapping down didn”t let pessimism form, which would otherwise cleanse the market of weaker buyers. And we didn”t even know Saturday that Sunday night”s gap down would have already done the same thing, making the open”s optimism more problematic.

Regardless, the open”s reaction down from 2082.25 resistance had created an objective to retest Sunday night”s 2054 low. The 2049.50 target of its retest produced a temporary bounce. RSIs diverged positively on its retest. LIKE Friday, selling pressure is satisfied without signaling an extension, but also without signaling a reversal. UNLIKE Friday, however, weekend illiquidity isn”t keeping away

So, the decline”s momentum remains intact, unless Tuesday”s open were to trend up. Whichever direction Tuesday morning were to trend, the impending three-day holiday weekend can leverage it to extend sharply in that direction. Gapping up Tuesday above Monday afternoon”s ~2061 high could even form a “session-long rally.” Something so substantial at this stage would be unlikely without a headline to match it.

Monday”s post-market Wrap recording:
https://roddavid10.mitel-nhwc.com/join/mjztjyx

Overnight monitoring of the chaRTroom
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