The pundits say Big Tech is leading the market. Big Tech is pulling the market down. I say look at the DOW Futures and see how the Preliminary Support on the Sep 8 10:30 level of 27365 was not breached on yesterday’s (Sep 17) 3:30 low. In Emini, that same space/time level was 3326 and, yes, a bid came in yesterday (Sep 17) at 9:30, 3315, and a second dip down at 12:30 to 3317, and price never looked back.
I sent an email out last weekend to my subscriber’s indicating we most likely would rally up to 3313 and then pull back to test the preliminary supply level. And yesterday we did test the preliminary supply (Sep 17). The Fed gave them what they wanted. Employment numbers were improved.
The high was tested on FED day Wednesday. That was around the 2:45 3319 handle. I made a video and discussed how to trade a Fed day and how WB’s clock dove-tailed with that day. It’s free if you’d like to watch it, just click on the picture below:
The virus started on the March 19 Spring Equinox (focus on attention) as it looks to wind down on the Sep 22 Autumn Equinox from a media perspective. Corporate America is trying to put it behind them and get on to the Christmas buying season. It will still be in the news media, but the bigger picture…folks are ready to put it behind them.
Summer doldrums are over and big money is back in town. Currently, we have a base of potential accumulation for eight days. Depending upon the news catalyst, you could see a spring Below the Selling Climax level of Sep 8 18:30 Globex low of 3286 on the virus news or some other catalyst.
America is still waiting for free money. Neither side wants to give in to the other. I heard folks are leaving the northern states and snatching up properties in Colorado by the parcels. The push is to have a better quality of life for themselves and their kids. Cleaner air and homeschooling seems to be the trend.
Looking Forward Friday, September 18, 2020
Globex has held a low of 3318 from yesterday. The bulls have defended their position with a higher high than the Globex 2:45 3310 handle. This has emboldened the bulls to keep a bid on. Currently, we are trading a 3352 handle. The ideal would be to keep trading within the range established this week which was defined by the automatic rally on Sep 8th.
The volume yesterday was rather high compared to other days. This could indicate that yesterday’s lows might need to be tested before the next move/campaign ensues.
I give you the best of the old school market technicians, JP Morgan, Herriman, Kearn, and Livermore. The traders of the 1930s. How they may have seen the market. I use the lens of Richard D. Wyckoff Principles and Procedures and through the eyes of WB’s hidden internal clock. The clock that controls all turns intraday every day
We had a good week this week. Our subscribers have been very lucky with the levels given: -4 points Monday, 15 points Tuesday, 59 points Wednesday, and 66 points Thursday. Total for the week 136 points, that would be $6,800 on 1 lot and $20,400 on 3 lots. That’s due to the volatility that crept back into the market. I’ll be the first to say, it does NOT happen every week. When it does it’s a beautiful thing!
I would love for you to join us. If you have not taken the time, now would be a great time for you to subscribe.
In the Tradechat Room
No real size on the MOC. The 15:50 candle was a small buy after signalling a sell and accelerated up and already upward trending close.
Questions? Please email me: Marlin@mrtopstep.com
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Spain is working on Pass number 3. Tricky stuff and seems to take heavy a heavy foot on the brakes to keep those numbers low.
To use our table, go to https://t2r4.com/cv19/views. Each column is sortable and if you click on a cell you will get a time-based chart of the state.
Wear your masks!
Chart of the Day
|(ESH20:CME) GLOBEX Session||(ESH20:CME) Day Session|
|High 3386.50||Opening Print: 3323.50|
|Low: 3310.25||High 3365.25|
|Volume: 490,000||Low: 3317.50|
|ES Settlement 3351.00|
|Total Volume 2.6 M|
S&P 500 RECAP – Trade Date 09/17/ 2020
#ES Money Maker Chart
S&P 500 Futures: Down 7 of the Last 10 Sessions
After selling off in the overnight hours down to 3310.25, the S&P 500 futures opened yesterday’s cash session at 3323.50, down 55.25 handles, then traded to a morning low of 3319.75 in the opening minutes, before heavy buy programs pushed the index futures higher up to 3356.50 for the early high. Then after a 17.25 handle pullback to 3338.75, the morning rally continued up to 3365.25, at 10:50, a 41.75 handle rally from the open. Following this, the ES reversed midmorning and sold off to 3317.50 for a low of day heading into 11:30 CT.
Midday, the S&Ps sputtered sideways into the final hour when heavy buys came in at 2:30 pushing the markets up to 3354.25 before settling the day at 3351.00, down 18.00 handles or -0.61%.
In terms of volume, it was a very strong 2.6 million contracts traded, although the roll helped increase the contracts traded. In terms of price action, the best moves were buying the open, then selling the rally midmorning while buying the dip early afternoon.
Our view, in most cases the ES tends to be busy in the first and last hour of a quad witching options expiration. After trading down to 3331.00, down 20 handles on Globex early last nigh,t the ES rallied back up to 3356.00 at 4:30 am. There is some talk that the expiring long call positions could cause some selling. Our lean is to sell the early rallies and buy weakness keying on the Globex lows as support. The average trading rang in the ES is about 43 handles ???
Market Vitals Technical Analysis
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As always, please use protective buy and sell stops when trading futures and options.
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