Post-market Wrap (recording & summary)

Wednesday’s breakout from a four-session range was not confirmed Thursday. As was expected for this pattern, the alternative to confirming would be a deep rejection of the breakout. Not just avoiding a positive close, but closing sharply lower.

Equally important is what that means for this pattern. Simply not confirming Wednesday’s breakout would have kept the door open to extending higher anyway. Trying to extend higher after Thursday’s dive would very likely be reversed to fresh lows.

No traction was gained Thursday afternoon, so only gapping open beyond either end of Thursday’s range could resume trending before late-afternoon. Oversold RSIs at Thursday’s 2153.50 low may facilitate a gap down. Meanwhile, lower lows overnight could already start recovering from 2152.00 and 2148.00.

Thursday’s unfinished business above at 2171.25 doesn’t prevent a deeper drop from developing. Already firming into Friday’s open, preferably after probing lower lows overnight — just not gapping down — would likely retest 2171.25 before the weekend. And then drop.

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

Monitor overnight Globex trading in the chaRTroom here.