Post-market Wrap (recording & summary)

Retesting the 2044.25 overnight high Monday afternoon created an “outside day.” Haven’t seen that in awhile. It’s otherwise meaningless, except to make remarkable an otherwise unremarkable range.

Actually, more could be said for Monday, which produced a new trend high close. That fulfills the minimum requirement established by Friday’s new trend high close — that there be an eventual higher close. Fulfilling it so quickly is a little useless, since it neutralized the setup’s predictive value.

Actually, the neutralized upside attraction now updates the reversal template with one less impediment. A reversal isn’t required, and it can be overcome, but two consecutive days of unremarkable (mostly unremarkable) does suggest the rally’s momentum may be lapsing.

Actually, it may be only the recent expiration sponsorship that is lapsing. The rally can resume by gapping up Tuesday, since Monday afternoon’s buyers gained no traction for their efforts. Or, an immediately break lower could find buyers at a lower level to sponsor the next rally leg.

Multiple sessions of relatively narrow ranging tend not to resolve immediately. In other words, trending tends to follow a false break in the opposite direction. So, reversing down would more likely begin by failing an aggressive probe of fresh highs, first.

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

Monitor overnight Globex trading in the chaRTroom here.