The S&P futures (ESZ19:CME) closed on Thursday at 3168, a new all-time high, about 27 points above its opening print of 3141.25, after closing Wednesday at 3143. It was a nice expansion of its trading range (3137.25 – 3177.50) after Trump tweeted yet again that ‘We’re close to a deal with China.’ It better be a ‘blow away deal if this market is to go higher, not just a “Phase I”. We are short two contracts at 3172.50 and continue to look for additional points of entry.
There is just not enough interest in the markets going higher once the China news actually hits. My thought is to look for a “sell the news” dynamic. Lagarde took no action to further buttress colleagues who are content to wait for inflation to rear its ugly head. They are going to be waiting a long time.
THE CLOSE
At 2:30 the ES traded 3170.5, up 27.5 handle as the MiM showed 667 Million to sell. At 2:45 the ES traded 3164.25 as the final cash imbalance showed $$61 million million to sell. The ES traded 3166.50 on the 3:00 cash close and settled at 3168 on the 3:15 futures close, up 25 handles or +.0.80% on the day.
In terms of the overall tone, it was a rocket-ship. After the Trump tariff deal headlines, the ES ripped up to 3180. In terms of the overall volume, it was huge! 2.33 million (ESZ19:CME) traded with 263,000 coming from Globex and 818,000 million (ESH20:CME) traded with 102,000 coming from Globex. All contracts made for a grand total of 3.15 million ES futures trading. Wowzers!!!
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