Post-market Wrap (recording & summary)

The day began at the edge of the precipice, gapping down to critical support at Friday’s low. Extending deeper would have launched a much deeper downleg. Avoiding that would squeeze the trapped shorts to probe the drop’s origin.

At least, avoiding a post-open drop should have recovered. Perhaps because Tuesday’s open barely touched Friday’s low, instead of probing it, Tuesday’s session only  bounced. It wasn’t actually a bounce. The intraday series of higher highs and higher lows qualified as a trend. And it wasn’t random noise. Only one timing window didn’t participate (the noon hour).

A 61.8% retracement of the open’s drop had defined the afternoon’s high, recovered only by surging into the close. That’s essentially “equilibrium.” It suggests a very wide-ranging session Wednesday without trending until late-afternoon. The stage is set for Wednesday afternoon’s FOMC policy statement and Chairman Yellen’s quarterly Q&A.

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

Monitor overnight Globex trading in the chaRTroom here.