Post-market Wrap (recording & summary)

I always take special notice of similar price action that develops during consecutive timing windows. That’s two-thirds of a pattern, so I want to be prepared for it to repeat. Prepared, and positioned.

Sessions are timing windows, too. So it’s interesting that Thursday’s pattern duplicated Wednesday’s recovery in some key ways. Both mornings were under pressure, recovered by surging above prior relative highs, which was rewarded by rallying into the close.

That’s accumulation. Not basing, which would launch a durable upleg. But accumulation that earns the reward of extending higher.

The two setups differed, too. Wednesday’s recovery developed upon exiting the morning’s bias environment, while Thursday’s surge didn’t develop until entering the afternoon’s bias environment. Thursday morning’s dip held above prior lows and fluctuated around unchanged, while Wednesday’s had ventured out onto the precipice.

Another difference is that Thursday afternoon’s rally fulfilled its minimum upside attraction at 1946.00, and extended to within 1-2 points of its potential to 1952.00-1953.00. Wednesday afternoon’s rally was constrained only by available time, and even then extended through the close.

So, extending higher early Friday is likely, that being the likely resolution to the two-day pattern of intraday recoveries. Maintaining early gains is not at all assured, being so near the next higher objective. Reacting down early from testing 1952.00-1953.00 (or even probing above it) could trend down hard into the close. Not reacting down would more likely trend up into the afternoon.

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

Monitor overnight Globex trading in the chaRTroom here.