Danny’s Notes

Trump Impeachment Trial, Coronavirus In US, Boeing Drops, FAA Pushes MAX Return Date To June Or July

After dropping down to 3307.25 on Globex Tuesday night after the China ‘virus’ headlines the ES bounced before yesterday’s 8:30 open. The ES traded 3316.50 on the 8:30 CT futures, traded 3316.00 then traded up to 3323.50. After the high, the ES pulled back to the 3319 area and fell into an early ‘back and fill ‘ pattern and around 11:45 traded up to a new daily high at 3329.75. After the high, the ES sold off down to 3318.00 as news hit that the United States had confirmed its first case of the coronavirus in Everett, Washington, and Boeing (BA) sold off after the company confirmed it now sees getting regulatory clearance for the 737 Max’s return well into the summer. All this while the Trump impeachment trial in front of the U.S. Senate was debating how to proceed. After the low the ES rallied 7 handles up to the 3326.00 level at 2:12 CT. 

The ES traded 3324.00 at 2:30 as the MiM showed $122 million to sell, traded 3319.00 on the 2:50 cash imbalance as the final MIM showed $1.6 billion to sell, traded 3321.50 on the 3:00 cash close and settled at 3319.50 on the 3:15 futures close, down 5.75 handle or 0.17% on the day. 

In terms of the ES’s overall tone, I have to say it was nothing short of amazing. There were multiple reasons for the ES to sell off and keep going down but it shook off everything from the impeachment hearings to the Boeing news to the first reported case of coronavirus in the United States. In terms of the day’s overall trade, volume was high with 1.46 million ES futures traded.