Post-market Wrap (recording & summary)

Friday morning’s gap up did everything needed to suggest it was headed higher. Everything, meaning nothing. Simply maintaining a gap up above all prior highs through the open tends to marginalize sellers for the morning. Actually, Friday’s gap up also extended higher during the opening 15 minutes of volatility, which was helpful confirmation, but not necessary.

Friday afternoon did nothing, too. But its only predictive value is in it being a new trend high close. On Fridays, that requires eventually there to produce another new trend high close. Not necessarily immediately, but eventually. So, an interim pullback is possible.

An interim pullback is also likely. One reason is the multi-week range that is likely to abruptly reject probes above it. A second reason is that Friday’s high satisfied the only outstanding attraction above by retesting last Sunday’s Globex trend extreme. Which informs the third reason for probably not extending higher Monday — since that highest outstanding objective was only neutralized, but held as resistance through the close.

Or, not. We’ll discuss the potential upside, whether momentary or extended, at this weekend’s Saturday Review. Join us at 9:30 am ET, its link will be emailed overnight.

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