Bank Redemption Day

Index Futures Net Changes and Settlements:

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Foreign Markets, Fair Value and Volume:

• In Asia 6 out of 11 markets closed lower: Shanghai Comp -0.42%, Hang Seng -0.54%, Nikkei -0.20%
• In Europe 9 out of 13 markets are trading lower: CAC -0.47%, DAX -0.46%, FTSE -0.71%
• Fair Value: S&P -0.13, NASDAQ +9.71, Dow -32.46
• Total Volume: 1.31mil ESH & 155 SPH traded in the pit

Today’s Economic Calendar:

Today’s economic calendar includes Housing Starts 8:30 AM ET, Jobless Claims 8:30 AM ET, Philadelphia Fed Business Outlook Survey 8:30 AM ET, EIA Natural Gas Report 10:30 AM ET, Randal Quarles Speaks 10:45 AM ET, Fed Balance Sheet and Money Supply 4:30 PM ET.

S&P 500 Futures: The Rally That Keeps Giving

Chart courtesy of @Chicagostock– $ES_F Remember the cup/handle from late last month? 2450s provided good support, b/o > 2520 forced buyers to chase, giving way to overcome FOMC 2592 high. Don’t want to lose 2520 or room to retest the year low. Any break of year low rejects C/H pattern to see 2350 next support.

If you asked someone what they thought of the S&P before Christmas, my guess is that most people would say that there were reasons to be concerned. The market had been getting pummeled since the end of September and rallied 13% since making is December 26th low. As I have always said… these are not our fathers markets! That all said, there is a ton of stock market uncertainty, and we all know that’s not a good thing for the #ES.

After trading higher in the globex session, making a high of 2617.00, the S&P 500 futures drifted lower late in the overnight session, then began to make a move higher into the cash open. The first print off the 8:30 CT futures open was 2614.75, and the early low came on the open at 2612.75, before the futures pushed up to 2624.00 in the first half hour in what would amount to the morning high. After pulling back to 2612.50 over the next half hour, the ES rallied to 2623 making a lower mid-morning high, then traded back down to a higher low of 2614.00 to conclude the morning.

The afternoon saw a steady grind higher, as the S&P’s made the high of day at 2626.25 after 1:30, but then began to reverse into the final hour of the day, eventually selling off down to 2615.25 just before 3:00. The benchmark futures printed 2616.25 on the 3:00 cash close, and then went on to trade 2612.50 into the daily settlement, eventually closing at 2613.50, up +8.00 handles on the day, or +0.31%.

Daily HotSpots

HotSpots are times during the market trading session that for the past XX days have consistently moved in one direction or the other. These HotSpots are published each morning pre-market. The next day, a results post is also published and weekly a summary post.

CAUTION: This data is under development and provided only for research and teaching purposes

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Lookbacks:

The lookback period (number of days) is set at 21,13,11,8 and 5 days. A heat-map is generated for each of these lookback periods, the best trade from day is scored.
The period of time that has consistently produced the best results becomes the hotspot for that look back. There are also different look-back types like Taylor and Taylor Plus.
Taylor cycles are usually 3-day cycles. A Taylor-5 look-back would use the last 5 trading days skipping back by 3 trading days. Taylor Plus uses calendar days so weekends and none
trading days are counted as part of the skip count. If a lookback period falls on a none trading day, it is not used so a TaylorPlus will continue skipping back until 5 trading days are found for the heatmap calculation.

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As always, please use protective buy and sell stops when trading futures and options.

_{Disclaimer: Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. Any decision to purchase or sell as a result of the opinions expressed in the forum will be the full responsibility of the person(s) authorizing such transaction(s). BE ADVISED TO ALWAYS USE PROTECTIVE STOP LOSSES AND ALLOW FOR SLIPPAGE TO MANAGE YOUR TRADE(S) AS AN INVESTOR COULD LOSE ALL OR MORE THAN THEIR INITIAL INVESTMENT. PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.}