Post-market Wrap (recording & summary)
The final hour’s accelerated pace met 1869.00 as the 3:37-3:52 position-squaring window opened. Its support was still being tested as the window closed. Persistently oversold 3-minute RSI had left oversold territory, diverging positively on the 1868.00 low’s retest.
That’s a long way down from exiting the noon hour at 1895.00, or testing 1904.00 Sunday night. But it’s Wednesday’s recovery high, which had extended higher Thursday and Friday. And so long as 1869.00 holds as support, the recovery can still resume to probe 10-15 points above Sunday night’s high to 1915.00-1920.00.
But Monday afternoon’s decline gained traction, so avoiding fresh lows Tuesday morning requires gapping up — a lot. Gapping up a little would still be likely to probe under Monday afternoon’s lows, under 1869.00. But so long as 1856.00 doesn’t break during lower, the corrective bounce could still be productive.
Details and other markets coverage are discussed in the post-market Wrap recording here.
Monitor overnight Globex trading in the chaRTroom here.
At the end of the market wrap you made some comments that introduced a new understanding for me. The concept of the sponsorship of the rally leg that originated Wednesday afternoon (originated from the decline’s low of 1804 – didn’t it? ) has a calculable potential to 1915/1920. If I’m following what you’re saying, the retracement of that leg (does that mean all the way back to its origin at 1804, or will 61.8% retrace be sufficient?) will make way for new sponsorship to arrive to initiate a rally leg that will have potential considerably higher than 1920. Do I have that right?
That’s exactly right, for one aspect of reacting down before 1915-1920.
There is an allowable range for fluctuation i.e. pullbacks while the corrective bounce develops. It may be deep and keyed off of a 61.8% measurement, or shallow and keyed off of 38.2%. Resuming the rally from the deeper correction would be more capable of creating a higher objective.