Post-market Wrap (recording & summary)

Is it, or isn’t it? First of all, what’s the “it” — substantial corrective bounce, or durable bottom? Corrective bounce, maybe. But two “V” bottoms do not a durable bottom make.

Wednesday’s 2004.00 low reacted  up throughout the afternoon tested 1869.00. Does the relentless feel of the afternoon rally make the bottoming attempt any more credible than a shallow bounce? The low’s RSIs diverged positively, while the next lower objective was neutralized. Overbought RSIs left outstanding at the high help to ensure its retest. And traction gained by the rally should be rewarded Thursday morning.

But Wreversal Wednesday? Durable bottom? That’s not so reliable considering the rally probed only temporarily back above Tuesday’s low without holding it. Strong-handed buying would have closed above 1865.00-1868.00 having probed it, or else patiently avoided it and reserved buying pressure.

Traction gained Wednesday afternoon can be rewarded by probing higher Thursday morning, while remaining vulnerable to resuming the decline. Probing higher after gapping up to and through 1881.00-1885.00 would be less likely to resume the decline soon. Otherwise, already rejecting the final hour’s surge above 1840.00 back under 1834.00 would be a big step to resuming the decline already.

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

Monitor overnight Globex trading in the chaRTroom here.