Post-market Wrap (recording & summary)

Monday finished with several mixed signals. They suggest that the rally isn’t required to extend higher immediately, but an immediate pullback would require eventual recovery.

Extending higher at all is aided by two factors. First is the proximity to the next higher objective at 2143.00, which was put into play by closing Monday above 2125.25. Second is Monday’s second consecutive higher close above Friday’s breakout close.

Momentum hasn’t reversed down, but the rally avoided triggering two of its sponsorships. First was Friday’s new trend high close, which had created the requirement for an eventual higher close. That attraction was neutralized already by Monday’s higher close.That’s not a sell signal, but it didn’t trap shorts.

Second is Monday’s 2127.50 gap up, which was tested after a dip touched Friday’s “lower prior highs.” It won’t become an attraction above to require recovery from a break lower.

A third factor challenging the upside is that Monday’s buyers gained no traction, so only maintaining a gap up Tuesday would signal new sponsorship had arrived.

I suspect the groundwork has been laid for 2-3 very volatile intraday sessions, with significant trending attempts in both directions. The end o’quarter earnings onslaught may be the catalyst, as warnings and beats fight it out on the news ticker.

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

Monitor overnight Globex trading in the chaRTroom here.