#ES Dip Buyers Rule The Tape

Index Futures Net Changes and Settlements:

Foreign Markets, Fair Value and Volume:

• In Asia 9 out of 11 markets closed higher: Shanghai Comp +1.02%, Hang Seng +2.09%, Nikkei +1.79%
• In Europe 11 out of 12 markets are trading higher: CAC +0.67%, DAX +0.81%, FTSE +0.82%
• Fair Value: S&P -0.49, NASDAQ +0.91, Dow -10.51
• Total Volume: 1.7mil ESH & 1.2k SPH traded in the pit

Today’s Economic Calendar:

William Dudley Speaks at 7:30 AM ET, Redbook 8:55 AM ET, Factory Orders 10:00 AM ET, Treasury STRIPS 3:00 PM ET, Lael Brainard Speaks at 7:00 PM ET, and Robert Kaplan Speaks at 8:30 PM ET.

S&P 500 Futures: Mutual Fund Monday, All Buy Programs And Buy Stops

During Sunday night’s Globex session, the S&P 500 futures sold off down to 2663.75, after the Italian vote that had no clear winner. The benchmark future made an overnight high at 2691.75, with a total of 318.000 contracts traded. The Asian markets were mostly lower over continued concerns of the potential impact of tariffs on global trade. In Europe the STOXX 600 was up 0.50% before the US open.

On Monday mornings 8:30 CT futures open, the ES traded 2675.50, and immediately traded up to 2681.75. After a small pullback, the ES traded up to 2684.75, and then made a series of lower highs before trading down to 2674.50, completing a MrTopStep 10 handle rule. Once the 10 handle rule was finished, the ES took off up to 2702.75 going into 11:00, then up to the weekly pivot at 2709.00, and then shot up to 2716.25. There were a few small pullbacks along the way, with ‘small’ being the key word.

After the high, the ES pulled back down to 2707.00, and then rallied up 2721.25. From there, the futures stutter stepped down to 2708.50 before trading back up to new highs at 2725.50 at 2:00, up 37 handles, or up 1.38%. Once the late day high was in, the ES pulled back dow to 2719.25, as the MiM went from over $500 million to sell to $225 million to sell. On the 3:00 cash close the futures traded 2719.50, and went on to settle at 2718.25 on the 3:15 futures close, up 27.75 handles, or +1.03% on the day.

In the end, it was was one mammoth short squeeze. After selling off hard last week, the ES started to rip higher on Friday, and was followed up with a gigantic rally yesterday. Adding to the rally was all the big hedges / protection being taken off yesterday. It was a non-stop buy program.

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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.}