The “gap” above end-of-the year settlement. The overnight globex high: 1280. Pre-market pull-back low: 1270.
Open: above the pre-market pull-back low: no test of the overnight low. Continuation higher in the direction of the gap. Re-test of the globex high, statistical high volume at the high (response selling), no higher high, and no buying interest above the globex high.
Fundamentals: Positive (above expectation) economic data at the announcement price was trading at 1276.
Mid-day: pull-back below the open, re-test of the pre-market globex low. Retracement, back to 1276, the lower edge of the opening range cluster. No re-test of the high.
Closing Range: Selling off from 1276 into the close, close below the open, close below the announcement price.
Fundamentals: Positive (above expectation) economic data at the announcement price was trading at 1276.
Positive and negative returns:
Sellers at the high positive, buyers at the high negative
Sellers at the announcement price positive, buyers at the announcement price negative
Sellers at the opening price positive, buyers at the opening price negative
Sellers at the low price negative, buyers at low price negative
No trade between the end of the year settlement (1254) and first day of the year low (1270)
Despite the positive economic data: at the close of today’s session, those who sold the high were in profit, and those who bought the high were at loss.
Close at 1272.25, 7.5 points below the high.
