Market Review

ES Zones Update

1st day of the quarter and we had heavy selling in Globex which continued throughout the session. Globex has provided a bounce so far. Today we await the unemployment claims which should provide some volatility again.

Buy Levels for today:

  1. 2430-2410 
  2. 2335-2315 

Sell levels for today:

  1. 2500-2510
  2. 2520-2540

For live levels join us on Zoom: Id – 818-561-3357

Bigger picture view is this pullback should be a buy for some higher prices circa 2700-2800 next few weeks.

Best of Luck 

Gagan Daphu 
ES Zones



Economic Calendar


Closing Prices


In the Tradechat Room

MiM

Someone lit a fire under a sagging market at 3:45 pm ET. I couldn’t find any corresponding news.  Keep that 2436 in mind for future reaction area. The reveal was slightly negative but moved to the plus side after the sell-side paired off. That took up 20 swift points into the Naz reveal which I think was negative and we settled down in the 2456 area for the day. 

Get the skinny when we get it.  Join the MiM. 


Chart of the Day

Largest Drop since WWII

GDP Year over Year: JP Morgan


Top Stories on MTS Overnight:


Globex

(ESH20:CME) GLOBEX Session(ESH20:CME) Day Session 
High 2568.25 Opening Print: 2474.75
Low: 2476.25High 2509.75
Volume: 465,000Low: 2453.50

ES Settlement: 2448.00


Total Volume: 2 M

S&P 500 Futures: #CoronaVirus Milstone; Over 200,000 Cases In The US

The ES traded up to 2568.25 Tuesday night and sold off down to 2476.25 early Wednesday morning on Globex. On the 8:30 CT futures open the ES traded 2474.75, rallied up to 2509.75 and started selling off going into the European close and sold off all the way down to 2453.50 and then rallied up to the 2483 area just after 1:00 CT. After the low, the ES rallied back up to the 2483 level and then puked back down to 2458.25 at 1:32 CT. There were a lot of little rips and dips in between but just too hard to do them all and keep with writing the OP and trading.

At 2:00 the ES traded 2458.00  and then dropped down to a new daily low at 2446.50 at 2:27. The ES traded 2446.25 at 2:30 and traded 2451.50 at 2:50 as the final cash imbalance showed $400 million to buy and flipped to $400 million to sell. On the 3:00 cash close, the ES traded 2455.00 and settled at 2448.00 on the 3:15 futures close, down 115 handles or -4.49% on the day.

In terms of overall tone, it was right in line with the news, negative. Clearly the coronavirus cases topping 200,000 helped spook the markets. In terms of the day’s overall trade, total volume was 2 M contracts with 465,000 coming from Globex making total day volume 1.25 million contracts traded on the day session.  

Our View

Body Bags

The coronavirus has become a nightmare for the world, New York, and the United States. New York is bracing for over 100,000 cases and in other parts of the U.S., the headcount continues to climb. Above is the Empire State building with red and white lights on to honor the medical and emergency workers. New York has become ground zero in the battle against the virus but the virus is winning. New cases have reached over 80,000 and the numbers keep growing as Gov. Andrew Cuomo acknowledged having underestimated how overwhelming the situation would become. “It’s more dangerous than we expected,” he said. My own opinion is that just about everyone underestimated it in the beginning but I don’t know. The problem with that is there are thousands of more cases that could have possibly been prevented. The miscalculation has been deadly. 

I see no reason to do a big view. We all know how serious things have gotten and it’s my guess that this goes on for months not weeks. 

Our view, the S&P has taken a beating in the last few days. While my overall view remains unchanged I also know the ES has sold off from 2637.75 down to 2448, 190 handles in two sessions. My guess is we see some type of rally. I just don’t know how far or how long it will last. I do think as the number of coronavirus cases increases over the next two weeks the ES will continue lower. 



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