European Indices On Longest Winning Streak Since Summer

Today’s Economic Calendar:

Today’s economic calendar includes Quadruple Witching PMI Composite FLASH 9:45 AM ET and Baker-Hughes Rig Count 1:00 PM ET

S&P 500 Futures: Bulls on Parade

Danny Riley
(Photo Credit: Provided)

I always take heed of the PitBull’s warning but when he said he was not as bullish as I was I and that the US stock market had used up a lot of its buying power recently I stuck to my gun. Below is a copy of yesterday’s view :

PitBull Warning: The Markets Have Used Up A Lot Of The Buying Power Our View The day started out with a big rotation, buy Dow stocks and sell the Russell 2000 but as the day dragged on the Nasdaq made a big late-day recovery. That said when the NQ rallied it didn’t seem to add up to very much for the ES. At the end of the day, the ES closed up 0.11%, the YM closed up 0.61% and the NQ closed unchanged or +0.02% and the RTY closed down 0.50%. While I remain in the bull camp the PitBull said he is not as bullish as I am that his unweighted TRIN was showing that the most of the buying power has been used up. I don’t want to do battle with the PitBull but according to the S&P cash study, today and Fridays quad witch have been up 18 / down 16 of the last 34 occasions. My guess is that even ‘if’ the ES does pull back it won’t closer lower two days in a row. Our view, we lean to selling the early rallies and buying weakness keeping in mind what the PitBull said but we also can not rule out new all-time highs!!! Additionally, the ES has been up 21 / down 13 of the last 34 occasions on the Monday after the Sept quad witch. You can take it from there. 2930- 2935 ON TAP!

While it would have been easy to let the experience and cautionary words of the PitBull rattle me, I thought it was worthwhile to pass along to everyone what was on the mind of one of the great Market Wizards who still has millions of dollars at risk every day. I held onto my view that 2935 was on tap and we sure got there yesterday, however, it is worth remembering that what the Bull told me was that he was not as bullish as me, that didn’t mean he was bearish.

After grinding higher in the overnight trade the S&P 500 futures opened the regular trading hours at 2927.75 up 12.75 handles and never looked back. The low of the day came early after rallying up to 2831.00 in the first 15 minutes the ES sold down to 2926.25 just before 9:00 and that was the chance to buy the pullback as a steady stream of buy programs lasted through the morning pushing up to a late morning high of 2937.25 just before noon.

Early afternoon the ES hit a new high of 2938.50 and then trailed off through the mid-afternoon hitting a low of 2934.75 before rallying back up to 2838.50 heading into the final hour. The 2:00 saw a move to a new high of day at 2940.75 but then as the MiM flipped to the sell side so did the S&P retracing down to 2936.00 before printing 2936.75 on the 3:00 close before settling the day at 2939.75 up 24.75 handles or +0.85% as the ES rallied into the settlement.

In the end, I was right but I threw in the sell the early rallies which didn’t work at all. In all honesty, I didn’t expect to the 2941 area but I am also not surprised. I thought 2935  yesterday. That said there was a big global rally today and the ES reacted in kind. In terms of the ES overall tone, the markets could have acted better. In terms of the day’s overall trade, it was pretty much straight up.

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