Market Review
ES – ZONES UPDATE
Markets are still under extreme pressure and this fall has been the quickest bar 1987 and 1929. So, what do we do?
Strategy is the same as the last few weeks, take the extreme levels intraday until we see some stability. Seems the market is screaming lower for some fiscal stimulus measures. We may get those in the next 48hrs. ECB is up later today, watch to see what they have in store for us.
A lot of indicators are calling for some sort of pause near the 2550/2600 levels but buyers are not reacting so far.
For today we have:
- Buy zone – 2601 – stop 2581 ( note this zone is within the circuit breaker area so may be void)
- Buy Zone – 2544- stop 2534, targets 2620+
- Buy Zone 2522- stop 2490, targets 2620+
- Short zone 2735, stop 2749, targets 2600-
- Short zone 2764 stop 2773, targets 2600-
At the time of writing we are just about to hit this grey zone, new zone will be updated close to the cash open and displayed on the zoom chart.
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Economic Calendar
Closing Prices
Closing prices for Wednesday, March 11
In the Tradechat Room
MiM
Buyers at 3:30 pm ET. Surprise! Every day this week. Despite an early $-1B to sell, the markets rose. Our reveal was a buy of almost $1B which lasted into the close.
Get the skinny when we get it. Join the MiM.
HFT Alert
Programs are slowing down, just 171 today, 90 buys and 81 sells. All the activity today was around 3 pm ET.
Chart of the Day
Top Stories on MTS Overnight:
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- Thursday: Unemployment Claims, PPI, Flow of Funds
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- AED cancels quarterly luncheon
Globex
| (ESH20:CME) GLOBEX Session | (ESH20:CME) Day Session |
| High 2877.00 | Opening Print: 2802.25 |
| Low: 2764.25 | High: 2814.50 Early |
| Volume: 480,000 | Low: 2702.75 |
| ES Settlement: 2740.75 Down 136.75 Handles or -4.73% | |
| Total Volume: 2.8 M |
S&P 500 Futures: WHO’s Tedros Says Coronavirus Can Be Characterised as Pandemic
The ES traded a high of 2877 down to 2764.25 on Globex during Tuesday night’s Globex session and traded on Wednesday mornings 8:30 CT futures open. I’m sorry I was too busy and too beat to do a play by play of yesterday’s trade. What I can say is the ES fell 1411 handles from Tuesday’s 2882.00 high down to yesterday’s 2814.50 low and fell 111.75 handles from yesterday’s 2814.50 early high to yesterday’s late 2702.75 low before rallying up to 2740.75 at the close. The ES fell hard overnight and just got demolished as a barrage of negative #coronavirus headlines hit. There were some small rallies but just about every uptick was sold. Below are just some of the headlines:
- TRUMP ADMINISTRATION TO DISCUSS NEW TRAVEL RESTRICTIONS ON EUROPEAN COUNTRIES AT WEDNESDAY MEETING – SOURCES
- WHO’S TEDROS SAYS CORONAVIRUS CAN BE CHARACTERISED AS PANDEMIC
- Credit Cracks Widen With Boeing Loan Drawdown, Debt Deals Halted
- Boeing eyes tapping $12 billion line of credit
- U.S. credit markets weakened on Wednesday, shutting primary issuance as investors await details of President Donald
- Trump’s economic package.
- Boeing Co. is planning to draw down the full amount of a $13 billion loan as the plane maker grapples with worldwide travel disruptions from the coronavirus (bberg)
- Boeing booked 46 cancellations last month, with net loss of 28 orders
- Boeing halts hiring, limits overtime in bid to preserve cash: WSJ
- Boeing Co.’s beleaguered 737 Max absorbed another blow as Air Canada chopped an order for the grounded aircraft by 11 jets, or 18% of the original deal. Air Canada’s shrinking appetite underscores the rising risk of cancellations for the Max, which could worsen as the coronavirus outbreak upends global travel and saps demand for new
These and other headlines just added to the magnitude of the sell programs as more investors sold out long term stock and ETF positions.
At 2:00 the ES traded 2731.00 as the early MiM showed $509M for sale, traded 2722.50 at 2:30 and the MiM showed $707M to sell and traded 2746.50 at 2:50 as the final cash imbalance showed $1.5B to sell. On the 3:00 cash close, the ES traded at 2748.75 and settled at 2740.25 on the 3:15 futures close, up 125.50 handles or 4.5% on the day.
In terms of overall tone, the ES was “extremely” weak. In terms of the day’s overall trade, total volume was low at 2.8 million with 480,00 coming from Globex making total day volume 2.32 million contracts traded on the day session.
Our View
CME Trading Floor Closed Until Further Notice Or Forever?
If you look at my Twitter feed from two weeks ago I made some serious predictions. The first was that they would shut down the Summer Olympics, there would be no NCAA basketball tournament, no NBA, and that Trump would shut down flights between the US and Europe. My final prediction… NY would close the subways. Last night Terry Duffy, the head of the CME Group, decided to shut down the trading floors “as a precaution” on Friday but the truth of the matter is he has wanted to shut down the floors since 1996 when Globex was introduced. These are just a few examples of what I call the global shut down. Hundreds of grade schools and colleges have already closed for the season and I think it’s just a matter of time until they are all closed.
Market Vitals Technical Analysis
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