Post-market Wrap (recording & summary)

Wednesday’s overnight probe above Tuesday’s high to 2152.25 came too late to be sponsored by strong hands. The open’s shallow gap up to 2150.75 confirmed as much, as did its immediate reversal back down into negative territory. That created the requirement to test 2141.00, which the morning probed down to 2139.50.

But that’s as far as sellers got. And they could have gotten away with much more. If that were due to patience, then the close would not have been unchanged and back above the prior afternoon’s low. Sellers didn’t exploit the opportunity to trend down, which suggests they are weak hands.

Gapping down Thursday under Tuesday and Wednesday’s ~2138.00 lows would signal stronger handed sellers had arrived, at least for the morning. Similarly, immediately resuming the rally Thursday morning would require gapping up above Wednesday’s 2149.00 highs — being an easier task doesn’t make it any likelier to be exploited, either.

Two observations of the bigger picture: First is that Wednesday was a second consecutive higher close above 2143.00. An interim dip would be likely to recover to fresh highs targeting 2158.00 and potentially also 2168.00. Second is a bearish bullish WedEX signal triggered. So, from whatever level at the time, Friday afternoon and Monday morning will likely be biased down.

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

Monitor overnight Globex trading in the chaRTroom here.