Post-market Wrap (recording & summary)

Wednesday’s two shallow pullbacks at the open and during the noon hour reflected excessive optimism. Their interim rally had triggered bias-up and fulfilled it, but extended higher anyway. It doesn’t get much more optimistic than that.

Maybe a little bit more optimistic. A 6-point surge into the FOMC news touched a fresh high at 2079.00. Suddenly all of that optimism was sorely missed, just when it was needed most. Price plunged easily to fresh session lows at 2055.50. One brief, deep correction doesn’t offset excessive optimism, but it helps. And the balance of the session rallied to new highs at 2085.25.

Last Thursday’s confirmed breakout required an eventual third higher close. That’s now done. The rally’s next higher objective after closing above 2055.00 was 2088.00. That’s not done. But now testing 2088.00 intraday can reverse down durably intraday, without leaving unfinished business above.

There’s no requirement for 2088.00 to be touched, or for its touch to reverse down immediately, if at all. But there is no other “unfinished business above” in-play. It is being attacked by excessive optimism. And a lot of energy was just expended intraday in order to absorb a lot of selling pressure. The rally’s sponsorship is weak-handed and vulnerable.

Details and other markets coverage are discussed in the post-market Wrap recording here:
https://roddavid10.mitel-nhwc.com/join/rkbtpxj

This evening, monitor overnight Globex trading in the chaRTroom at:
non-xp ilinc