Consumer Staples Rain On The Bull Parade

Index Futures Net Changes and Settlements:

Foreign Markets, Fair Value and Volume:

• In Asia 10 out of 11 markets closed lower: Shanghai Comp -1.47%, Hang Seng -0.94%, Nikkei -0.13%
• In Europe 6 out of 12 markets are trading higher: CAC +0.44%, DAX -0.14%, FTSE +0.44%
• Fair Value: S&P -0.14, NASDAQ +8.03, Dow -29.31
• Total Volume: 1.5mil ESM, and 1.1 SPM traded in the pit

Today’s Economic Calendar:

Today’s economic calendar includes Charles Evans Speaks 9:40 AM ET, John Williams Speaks 11:15 AM ET, and the Baker-Hughes Rig Count 1:00 PM ET.

S&P 500 Futures: #ES Stumbles As Consumer Staples Stocks Tumble

Thursdays trade started with a Globex trading range of 2713.50 to 2698.50, and 137,000 e-mini S&P 500 futures contracts traded. The ES traded 2701.00 on the open, up ticked to 2702.50, and then sold off down to 2692.25. From there, the futures rallied up to a new high at 2703.50, then just after 11:00 traded down to 2684.25, down -25.50 handles on the day. After the low, the ES back and filled for the next 45 minutes, and then traded back up to 2690.00 before selling off down to a new low at 2683.50.

After a small bounce, the futures sold off down to a new low at 2681.50, rallied up to 2689.50, pulled back down to 2682.50, and then rallied back up to the 2690.00 level. Next, there was a small stop run up to 2692.00, and then a trade down to 2686.50 as the MiM went from $350 million to sell to $610 million to sell. All of a sudden, there was a blast up to 2699.00 as a headline hit the tap saying, “ROSENSTEIN SAID TO TELL TRUMP HE’S NOT TARGET OF MUELLER PROBE.”

After the rip the ES pulled back down to 2693.25. On the 2:45 cash imbalance reveal the futures traded 2695.50, then 2692.75 on the 3:00 cash close, and then went on to settle at 2692.00 on the 3:15 futures close, down -18.5 handles, or -0.68% on the day.

In the end, it was a very choppy day, and the late day rip was another great example of how the headline algos rule the tape. Volume jumped up to 1.51 million contracts, which is higher for what we have been seeing.

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