Market Review – Today’s ES Zones
Gagan Daphu – ES Zones
- Buy 3340 stop 3332 ( Orange Zone) targets 3360-75
- Buy 3308 stop 3303 ( White Zone) targets 3332-3360
- Buy 3291 stop 3287 targets 3305-3330
Below is the daily fractal map, after this new high we are looking for a higher low circa 3265 before 3430 targets.
In the Tradechat Rooms
The MiM
Another forced gap-up day, but yesterday the closing imbalance wasn’t going to confirm the enthusiasm as the closing orders were about 1B$ net to sell. That number flashed up on our indicator at 3:30 pm ET and did start some selling, but in the end, we liked were we had been and the markets closed near the highs.
HFT Alert
Despite the massive up day, there wasn’t a lot the programs did. That Capper program came in at just about the high of the day and sealed the deal. Twenty programs, 9 buys and 11 sells.
Chart of the Day
Top Stories on MTS Overnight:
- Trump uses State of Union to campaign; Pelosi rips up speech
- Wednesday: Trade Deficit, ADP Employment, ISM non-Mfg
- Secretary Perdue Statement on President Trump’s…
- Markel (MKL) Q4 Earnings and Revenues Miss Estimates
- The Risks Facing Oil Markets Have Changed
- Earnings Scheduled For February 5, 2020
- NASDAQ Reaches New Closing High as Rebound Continues
Globex
| (ESH20:CME) GLOBEX Session | (ESH20:CME) Day Session |
| High 3357.75 | Opening Print: 3328.25 |
| Low: 3332.50 | High 3338.00 |
| Volume: 337,405 | Low: 3388.25 |
| ES Settlement: 3335.00 | |
| Total Volume:2M |
S&P 500 Futures: ES Up 138 Handles In 3 1/2 Days
After mounting a 40+ handle rally during the Globex session following the European open the S&P 500 futures printed 3328.00 on Wednesday’s 8:30 am CST cash open up 28.50 handles or .90% and then traded to an early morning high of 3329.25 on the open before selling down to 3311.75 at 9:45.
From there the ES rallied into the 11:00 hour making a late morning high of 3327.75, trading a tick from the open. As the equity index futures went into the midday passing the Euro close activity slowed down. The S&P’s did make an early afternoon low of 3321.25 before rallying to 3332.50 as the MiM was showing 700 million to sale and while futures were going into the final hour.
The final hour of the trading day buy programs hit at the top of the hour pushing up to 3336.00, however, as the MiM grew to over 1 billion in sell size the benchmark futures came off the highs making a late day low of 3327.00 before printing 3333.50 on the 3:00 cash close and then settled the day at 3334.75 up 35.25 handles or 1.07%.
In terms of the day, it was all about the set up from the overnight session. Aside from the 90-minute rally in Globex, the day was quiet. Buyers won the day in the regular session, defending an 18 handle pullback, then bidding up to just ticks from an all-time high and closing just five ticks from the high of day.
The Ups And Downs Of The S&P
Our view:
The ES crashed down to 3180 after Iran’s missile attack on US bases in Iraq and then rallied sharply. Sunday night the ES declined down to 3212.75 ( higher low ) that helped to create this week’s short-covering rally. It’s difficult to say but like I said the day of the big selloff the S&P could care less about the China virus. What I should have said is that the risk would be negated by interest-rates at 1.5% and QE4 because then it is a global macro event and the S&Ps PE ratio. Will the China virus continue to spread? I think so. Will there be a treatment for the virus? I think so. At the end of the sell-off and the rally in the S&P is another great example of firms getting over hedged and too short.
Our view, I am going with the same call as yesterday; you can sell the early rallies and buy the bull back or you can just be patient and buy the ES when it pulls back. They may sell the Trump acquittal, maybe a sell the news event but the ES is on its way to 3400+.
PitBull: *OSC=Oscillator: CLH OSC -30/-29 TURNS DOWN ON A CLOSE BELOW BELOW 4710 ESH OSC 6/4 TURNS DOWN ON A CLOSE BELOW 320207 VIX OSC 2/10 TURNS UP ON A CLOSE ABOVE 2051.
Market Vitals Technical Analysis
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