Post-market Wrap (recording & summary)

If there’s anything bullish about Tuesday’s decline, it’s the afternoon air pocket from 2055.00 to 2038.00. Suddenly starting a one-hour slide of 17 points doesn’t happen without expending a lot of selling pressure. Air pockets form from a sudden influx of sponsorship, not from the absence of counter-trend opposition.

That’s not the bullish part.

Finally stalling at 2 ticks under Friday afternoon’s 2038.50 low, a bounce resolved down to a fresh low at 2036.75. RSIs diverged positively, enabling a bounce up to 2045.00.

That’s not the bullish part, either.

Actually, there is nothing bullish about Tuesday afternoon’s air pocket slide. Not, yet. But having expended so much selling pressure without gaining traction for the effort, the leg is vulnerable to rejection. Gapping up Wednesday to and/or through its 2055.00 origin would be bullish, targeting fresh highs for the week above 2070.00-2071.00.

Back above 2048.00 and 2050.50 overnight would help to position the open for gapping up sufficiently. Otherwise, fresh lows would target 2033.00 and 2027.00 before the next chance to reject the decline.

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

Monitor overnight Globex trading in the chaRTroom here.