Ooops, They Did It Again; China Sets Yuan Fixing Weaker Than 7 For First Time Since 2008

Charts, Commentary, News, Stocks, The Opening Print


Index Futures Net Changes and Settlements:

ContractSettlementNet Change+/-%
S&P 500 (ESU19:CME) 2880.50+4.50+0.15%
DowJones (YMU19:CBT)25,940+16+0.06%
Nasdaq 100 (NQU19:CME)7553.25+37.75+0.50%
Russell 2000 (RTYU19:CME)1500.10+0.70+0.04%

Foreign Markets, Fair Value and Volume:

  • In Asia 9 out of 11 markets closed higher: Shanghai Comp +0.93%, Hang Seng +0.48%, Nikkei +0.37%
  • In Europe 13 out of 13 markets are trading higher: CAC +1.19%, DAX +0.75%, FTSE 0.25%
  • Fair Value: S&P -0.95, NASDAQ +4.89, Dow -33.17
  • Total Volume: 2.67 million ESU & 193 SPU traded in the pit

*As of 7:00 a.m. CST

Today’s Economic Calendar:

Today’s economic calendar includes Jobless Claims 8:30 AM ET, Wholesale Trade 10:00 AM ET, EIA Natural Gas Report 10:30 AM ET, a 30-Yr Bond Auction 1:00 PM ET, Fed Balance Sheet & Money Supply 4:30 PM ET.


S&P 500 Futures: ES Rallies 175 Handles In 2 Days

Chart courtesy of Scott Redler @RedDogT3Mostly green arrows around the World following the US MKTS big reversal. Yesterday, $spx held Monday’s lows & reclaimed 2836 to close on highs. $spx futures +9 giving some upside follow thru. For today, see if it gets & stays above 2892-2899 to fill that gap up to 2910ish.

After trading up to 2889.25 during Tuesday nights Globex session, the S&P 500 futures (ESU19:CME) broke down to 2836.00 early Wednesday when news out of China hit the tape saying the PBOC would not be cutting rates, sparking a selloff in U.S. markets. The subsequent Trump tweets lambasting the FED for its quantitative tightening policy, and pretty much demanding further rate cuts, just added more fuel to the fire.

The ESU opened Wednesday’s regular trading hours (RTH) at 2847.25 (down -29 handles) and quickly traded down to print a new low at 2823.25 (down -52.75 handles). That was it for the bears though. The early headlines had traders caught offsides, and we all know how unforgiving the S&P is when you’re on the wrong side.

By 10:00, the futures had recovered most of its early losses, trading up to 2867.75, then after some back and fill down to 2844.50, continued on its way back to new highs.

Going into the close, the ES had just topped out at 2891.50 when the MiM reveal came out showing $1.1 billion to sell MOC. Sellers immediately went into action and pulled the futures down to 2879.25. It would then go on to print 2883.25 on the 3:00 cash close, and 2880.00 on the 3:15 futures close, up +4 handles on the day, and up +56 handles from the low of the day. 


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Danny Riley (3071 Posts)

Danny Riley has worked in the futures and options industry for 38 years, including the CBOT’s bond room, where he worked for several of the Market Wizards. He went on to build the largest volume desk in the S&P 500 Index Futures, serving some of the largest banks and hedge funds, the UBS program trading business, and some of the world's top individual traders. As a leader and co-creator of the MrTopStep IM-Pro Trading Room, he shares trading ideas and breaking market news live from the floor with our other professional traders and new traders eager to experience the power of collective intelligence. Join us today and get the edge only social trading can give you.


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