Post-market Wrap (recording & summary)

Being the day before a 3-day holiday weekend, Thursday’s sponsorship was by definition weak-handed. Bouncing during the morning’s bias-down environment was all the more so. Reversing down to the decline’s 2009.00 objective could have ended the pullback.

But the bounce extended. The morning’s bounce had created room to absorb selling pressure, but that room had to be exploited without delay. The afternoon’s extended bounce made the mistake of closing at 2027.00 resistance (cash session close). Counter-intuitively, rather than create extra room to absorb selling, sellers were refueled. Holding 2009.00 is now only more difficult.

That potential for not holding 2009.00 hasn’t been in our discussions previously. Stretching the rubber band so much tighter Thursday has introduced another template seeking bigger objectives than just neutralizing “lower prior highs,” looking instead to fill gaps. The nearest qualifying objective is 1980.00.

What if 2009.00 is not tested next? The gap back down to Thursday’s 2015.00 open should facilitate that. But not already reversing down at Monday’s open could extend the bounce to 2039.00-2041.00 while still being only a temporary correction. Even if sellers weren’t obviously in control at Monday’s open, I would still be skeptical of further upside if Monday’s open wasn’t already obviously extending higher.

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

REMINDER: NO SATURDAY REVIEW ON HOLIDAY WEEKENDS. CHARTROOM WILL RE-OPEN SUNDAY NIGHT.