Early Selloff Leads To Big Rally

Index Futures Net Changes and Settlements:

Foreign Markets, Fair Value and Volume:

• In Asia 7 out of 11 markets closed lower: Shanghai Comp -0.04%, Hang Seng -0.26%, Nikkei -0.31%
• In Europe 10 out of 13 markets are trading lower: CAC -1.03%, DAX -1.17%, FTSE -0.25%
• Fair Value: S&P +0.34, NASDAQ +14.14, Dow -21.94
• Total Volume: 1.96mil ESH & 428 SPH traded in the pit

Today’s Economic Calendar:

Today’s economic calendar includes the 52-Week Bill Settlement, MBA Mortgage Applications 7:00 AM ET, Challenger Job-Cut Report 7:30 AM ET, ADP Employment Report 8:15 AM ET, Jobless Claims 8:30 AM ET, ISM Mfg Index 10:00 AM ET, Construction Spending 10:00 AM ET, Fed Balance Sheet and Money Supply 4:30 PM ET.

S&P 500 Futures: Shaky Start To 2019

Chart courtesy of @Chicagostock – $ES_F Also showing C/H pattern after last week’s V bottom recovery. Buyers need to defend base to attempt next leg >2520 to attempt expansion of range (2320-2520) up to 2720.

After selling off overnight, the S&P 500 futures rallied to open yesterday’s cash session at 2468.00, 15.75 handles above the overnight low. The first move after the bell was a quick print at 2467.00 in the opening minute, which would be the low for the day, before buy programs made their way in leading to a move higher move.

Through the rest of the morning the ES never looked back. The early morning high was at 2512.25, which came in shortly after 10:00, and then after an 18 handle retrace, the buy programs relaunched, propelling the ES up to 2511.50 to close the morning.

The afternoon saw a push up to new highs, printing 2520.50 just before 1:00, and then began to turn lower into the final hour, pulling back down to 2595.25 late in the day, before rallying up to 2513.25 in the final minutes, and closing out at 2511.00.

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.

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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.}