As China Slows, So Does The World

Index Futures Net Changes and Settlements:

Foreign Markets, Fair Value and Volume:

• In Asia 8 out of 11 markets closed lower: Shanghai Comp -1.18%, Hang Seng -0.70%, Nikkei -0.47%
• In Europe 13 out of 13 markets are trading lower: CAC -0.45%, DAX -0.40%, FTSE -0.33%
• Fair Value: S&P +0.02, NASDAQ +8.14, Dow -26.73
• Total Volume: 1.74mil ESH & 749 SPH traded in the pit

Today’s Economic Calendar:

Today’s economic calendar includes Redbook 8:55 AM ET, and Existing Home Sales 10:00 AM ET.

S&P 500 Futures: The Gift That Keeps Giving #ES 2678.00

Chart courtesy of @Chicagostock – $ES_F Pressed into major resistance from it’s failed mid Dec w/ bear flag that led lower. To squeeze resistance = move over Dec 12 high 268650 to allow 2720. Failure < Thursday low open door to target last Monday’s low for sell stops. Break of Monday low confirms failed test.

After trading higher in the overnight session, the S&P 500 futures opened Friday’s regular trading hours at 2656.00, and in the first 30 minutes traded down to what would be the low of the day at  2647.00. From there, buyers came in strong, pushing the ES up to 2661.00 before the end of the first hour. After an 8.50 handle pullback, buyers reloaded, pushing the index up to 2675.50 for the late morning high in what would eventually turn into a slow grind higher, with the largest pullback after 9:30 being 6 handles.

The afternoon saw a chop lower down to 2662.00 at 1:45, and then heading into the final hours buyers came in propelling the benchmark futures higher into the close, making a late day high of 2672.25 in the closing minutes. The ES went on to settle the day at 2669.50, up +34.25 handles, or +1.35%.

In the end, when the ES looked its worst, you could not find a bull for miles. Who would have thought when the ES was hurling down that it would rally over 14% in such a short period of time. In terms of the ES’s overall tone, it acts ok, but tired. In terms of the ES’s overall trade, its clear to see the higher it goes, the lower the volume gets.  

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

If you have questions about HotSpots you can contact us at info@mrtopstep.com.

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.

Get all of todays HotSpots here 

SIGN UP HERE TO GET THE FULL MRTOPSTEP OPENING PRINT!

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.}