Big Rally In US Equities

Index Futures Net Changes and Settlements:

Contract	Settlement	Net Change	+/-%
S&P 500 (ESM19:CME)	2839.25	+32.25	+1.14%
DowJones (YMM19:CBT)	25,573	+289	+1.14%
Nasdaq 100 (NQM19:CME)	7421.00	+106.75	+1.45%
Russell 2000 (RTYM19:CME)	1546.10	+26.00	+1.71%

Foreign Markets, Fair Value and Volume:

In Asia 8 out of 11 markets closed higher: Shanghai Comp +1.91%, Hang Seng +0.52%, Nikkei +0.58%
In Europe 13 out of 13 markets closed lower: CAC -0.47%, DAX -0.53%, FTSE -0.04%
Fair Value: S&P +1.44, NASDAQ +11.43, Dow -11.59
Total Volume: 1.79 million ESM & 604 SPM traded in the pit

Today’s Economic Calendar:

Today’s economic calendar includes MBA Mortgage Applications 7:00 AM ET, Retail Sales 8:30 AM ET, Empire State Mfg Survey 8:30 AM ET, Industrial Production 9:15 AM ET, Randal Quarles Speaks 9:30 AM ET, Atlanta Fed Business Inflation Expectations 10:00 AM ET, Business Inventories 10:00 AM ET, Housing Market Index 10:00 AM ET, EIA Petroleum Status Report 10:30 AM ET, Tom Barkin Speaks 1:00 PM ET, and Treasury International Capital 4:00 PM ET.

S&P 500 Futures: 10 Year Bull Market Fights Back

Chart courtesy of Stewart Solaka @Chicagostock – $ES_F Dead cat bounce?
Buyers need to overcome Monday’s high and settle above for another shot at 2900. Failure to do so, keeps buyers from last month on the hook for further pressure against late March 2789 low.

Yesterday’s rally actually started when the major Asian markets didn’t react as negatively to Monday’s selloff in the US. This helped Europe rally, which helped propel the #ES higher. It was also Taco Tuesday.

During Monday nights Globex session, the S&P 500 futures (ESM19:CME) printed a high of 2831.50, a low of 2799.75, and opened Tuesday’s regular trading hours at 2822.75.

After popping up to 2832.00 on the 8:30 CT bell, a sell program activated, taking the ES back down to 2821.50. It was starting to look grim, especially after mimicking the same early pattern from Monday’s big selloff. The panic was short lived though, and the futures did an about face to start a trend day higher.

By 11:00, the ES had put in a morning high at 2850.50, and then took a break to do a little back and fill down to 2843.00. From there, the futures continued to grind higher, eventually topping out at 2853.75.

Just before 2:00, the ES started to see some weakness, and made a quick trip down to 2838.25. Then, when the 2:45 cash imbalance reveal came out showing $443M to buy, it dropped down to 2840.25. The futures would then go on to print 2836.00 on the 3:00 cash close, and 2839.25 on the 3:15 futures close, up +32.25 handles on the day.

In the end, the overall tone of the ES was strong. In terms of the days overall trade, total volume was lower, with 1.8 million futures contracts traded.

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.

ES_F	LONG
Type	Entry	Exit	Trade %	Profit %	Points	HeatMap
normal-21	1320	1358	86	0.01	39.75	chart
normal-13	1320	1358	100	0.01	39.50	chart
normal-11	1318	1357	100	0.01	40.75	chart
normal-8	1210	1250	100	0.02	49.25	chart
normal-5	1210	1250	100	0.02	43.50	chart
taylorPlus-21	1252	1350	81	0.02	43.75	chart
taylorPlus-13	1203	1233	92	0.01	34.50	chart
taylorPlus-11	1204	1242	91	0.02	48.50	chart
taylorPlus-8	1204	1242	100	0.02	45.00	chart
taylorPlus-5	1207	1242	100	0.01	38.50	chart
taylor3-21	1307	1403	81	0.02	46.75	chart
taylor3-13	1450	1521	92	0.02	44.75	chart
taylor3-11	1450	1521	100	0.02	44.50	chart
taylor3-8	1203	1236	100	0.02	47.75	chart
taylor3-5	1151	1234	100	0.02	46.25	chart

ES_F	SHORT
Type	Entry	Exit	Trade %	Profit %	Points	HeatMap
normal-13	1507	1543	-85	-0.01	-26.50	chart
normal-11	1507	1543	-91	-0.01	-25.00	chart
normal-8	1000	1039	-87	-0.01	-40.25	chart
normal-5	1454	1551	-100	-0.01	-31.75	chart
taylorPlus-13	0939	1017	-85	-0.01	-39.75	chart
taylorPlus-11	1013	1045	-82	-0.01	-18.50	chart
taylorPlus-8	0942	1031	-87	-0.01	-33.00	chart
taylorPlus-5	1451	1544	-100	-0.00	-7.25	chart
taylor3-13	1056	1146	-85	-0.02	-49.25	chart
taylor3-11	1056	1130	-91	-0.01	-38.00	chart
taylor3-8	1506	1541	-100	-0.00	-14.00	chart
taylor3-5	1056	1151	-100	-0.01	-38.50	chart

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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.}

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Danny Riley (3001 Posts)

Danny Riley has worked in the futures and options industry for 38 years, including the CBOT’s bond room, where he worked for several of the Market Wizards. He went on to build the largest volume desk in the S&P 500 Index Futures, serving some of the largest banks and hedge funds, the UBS program trading business, and some of the world's top individual traders. As a leader and co-creator of the MrTopStep IM-Pro Trading Room, he shares trading ideas and breaking market news live from the floor with our other professional traders and new traders eager to experience the power of collective intelligence. Join us today and get the edge only social trading can give you.