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Market Review

Globex

S&P 500 Futures: Jobs Friday RIP

It’s totally crazy, 22 million people lost jobs. 

The ES traded 2874.50 on Thursday 8:30 CT futures open. After the open, the ES down-ticked to 2872.50 at 8:37 and then rallied up to 2886.75 at 8:56. The ES then traded back down to 2868.75 and then chopped all the way up to 2894.25 at 10:46. After the high, the ES pulled back down to 2884.75. At 12:09 the ES traded 2892.75 and then sold off down to 2868.25 at 2:15

At 2:30 the ES 2921.00 and traded 2923 as the 2:50 cash imbalance showed $1.3 billion to buy. On the 3:00 cash close, the #ES traded 2924.00 and settled at 2924.25, up 45.5  handles or up 1.58% on the day. 

In terms of the ES’s acted firmly all day. In terms of the day’s overall trade, there were a total of 1.3 million ES traded with 305,000 coming from Globex making total day volume only 995,000 contracts traded on the day session.

Economic Calendar

Closing Prices

In the Tradechat Room

MiM

Early data did not get us excited either side and while the 3:50 MOC showed 1.2B, we still had only 65% of symbols to the buy.  That did drive the market up after the close with a 3-minute sell-off into the close which was most likely weekend-wary traders looking to exit. Still no market conviction to take us to the next level. 

Questions?  Please email me: Marlin@mrtopstep.com

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Our View

Most Hated Rally In History Continues

The markets continue to rally the shorts, i.e. the big institutional hedges are being lifted and the losses are starting to add up. As of Friday, the ES has rallied an incredible 1,124 handles or 27%. No matter what you think, it’s hard to argue with. On one side of the room are the dip buyers who are running the tape and on the other side of the room are the thirsty bears who are screaming for lower prices. 

Our view, the ES opened lower on Globex and rallied and then pulled back. I still think 2950-2960 is in the cards I just don’t know about today. Our lean is to sell the early rallies and buy the mid-morning pull back and then wait for the late day MIM pull pack. Beyond today my gut says we see some type of pullback this week. It’s just been too easy on the upside. 

Danny Riley is a 39-year veteran of the CME  trading floor. He has helped run one of the largest S&P desks on the floor of the CME Group since 1985.

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