S&P Bounces Back After Mondays Drop

Index Futures Net Changes and Settlements:

Foreign Markets, Fair Value and Volume:

• In Asia 11 out of 11 markets closed higher: Shanghai Comp +1.35%, Hang Seng +1.60%, Nikkei +2.16%
• In Europe 13 out of 13 markets are trading higher: CAC +2.03%, DAX +1.18%, FTSE +1.34%
• Fair Value: S&P +0.16, NASDAQ +8.01, Dow -30.82
• Total Volume: 2.48mil ESZ & 1,031 SPZ traded in the pit

Today’s Economic Calendar:

Today’s economic calendar includes 8:15 am ADP employment, 8:30 am Employment cost index, 8:30 am Treasury quarterly refunding, and 9:45 am Chicago PMI.

S&P 500 Futures: Turn-a-round Tuesday; Lots of Rips And Dips

_{Chart courtesy of @Chicagostock – $ES_F Tuesday’s session holding >2640 kept shorts trapped for a squeeze >2683. Wednesday: Open >2689 keeps shorts on hook, buyers forced to chase, giving way to target Monday’s 2707 high for squeeze. Open<2672 needed to set negative tone and search for support from Tuesday’s b/o.}

After chopping during the overnight session, the S&P 500 futures opened Tuesday’s RTH at 2641.25, and printed a 2635.75 low on the 8:30 CT bell. Strong buy programs immediately helped push the S&P’s up to the early high of 2675.25 just before 9:00. From there, the rest of the morning would be filled with broad, choppy ranges, as the ES went down to a mid morning low of 2645.50, and then up to a late morning high of 2673.75, before trading lower into the midday.

The afternoon saw a 2640.50 low at 12:30, and then the ES began to rally, chopping up to 2660.00. Afternoon buy programs eventually came in, pushing the S&P up to a new high of day in the final hour at 2686.50, and then printed 2683.25 on the 3:00 close, before settling the day at 2684.50, up +41.00 handles, or +1.55%.

In the end, the ES did recover from its early fall. In terms of the ES’s overall tone, it ‘feels’ like the selling could be drying up. Does that mean the selloff is over? I doubt that, but as I pointed out last week, the ES is oversold. In terms of the days overall, trade 2.48 million contracts traded, which is pretty much in line with the 2+ million that have been trading everyday for the last three weeks.

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_{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.}