|(ESH20:CME) GLOBEX Session||(ESH20:CME) Day Session|
|High 3849.00||Opening Print: 3826.25|
|Low: 3813.25||High 3845.00|
|Volume: 170,000||Low: 3822.25|
|ES Settlement 3833.50|
|Total Volume 1.13 M|
S&P 500 futures Recap – trade Date January 22, 2021
S&P 500 Futures: Small Retreat from All Time Highs But Still Up on the Week
After trading in a 35.75-handle overnight range, the S&P 500 futures opened Friday’s cash session at 3826.25, traded to an early morning high of 3837.25 just after 9:00 CT and reversed to sell down to the daily low of 3822.25 just after 9:30. From there, buyers came in pushing the index futures higher for the rest of the morning to 3842.50 just before 11:30.
The afternoon saw sideways price action before the ES was able to grind to the daily high of 3845.00 after 2:30 and then selling came in at the close leading the benchmark future to settle at 3833.50, down 12.75 handles on modest volume of 1.13 million contracts. In terms of price action, it was all about buying the first-hour low and holding into late day.
In the Tradechat Room
The early MIM was flashing a decent sell which by the 15:50 reveal was bought up and the market went into its “sell into the Friday close and buy the actual close for Sunday night gains mode”. We sold off a solid 12+ points into that close.
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Chart of The Day
Week Ahead : Tech Earnings, Fed Meeting and US GDP
The ES did exactly what I said it would do on Friday morning but didn’t do what I thought it would do on the close. All the big rotations have affected the closing RIPs over the last couple of months but it didn’t have anything to do with the rotations on Friday’s close. Over the weekend I heard a story that a big fund priced a big long basket of stock and the banks that made the prices sold futures and calls to offset the positions. I pride myself on my ability to see certain opening and late-day trade setups and I didn’t see that selling coming. My bad!
Our view, in most cases the selling we saw on Friday’s close should not affect the direction, meaning the ES should bounce. I was looking for 3854 – 56 and I think that’s where the ES could bounce to initially. There is a lot of talk that this week could be a down week but I think the ES gets above 3860 and holds. I think the futures could be headed up to the 3880-3900 level. Our lean is to sell the early rallies and buy the pullbacks and then come back and play the MIM late in the day.
Danny Riley is a 39-year veteran of the CME trading floor. He ran one of the largest S&P desks on the floor of the CME Group since 1985.
As always, please use protective buy and sell stops when trading futures and options.
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