Post-market Wrap (recording & summary)

The topping template is dead. Long live the topping template.

We began tracking the template last Saturday. For four consecutive sessions, the market didn’t do anything not allowed by the template. Last Friday’s relative high close made specific requirements for Monday, which were fulfilled. But rejected surges weren’t converted into a mid-week collapse, opening the door to fresh highs.

This Friday’s fresh highs end the topping template. That topping template. But Friday’s close was also a breakout, so a new topping template would begin tracking if Monday doesn’t confirm it. And Monday’s don’t often confirm Friday breakouts.

Meanwhile, the bigger picture is threatening new highs. The highest calculable corrective bounce limit was tested last Friday. Confirming this Friday’s close above it would put into play new highs. Not confirming it would maintain the rally is a correction, and vulnerable to reversing down sharply… We’ll review it all in detail at the Saturday Review.

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