Rate Cuts Scare The S&P

Index Futures Net Changes and Settlements:

Foreign Markets, Fair Value and Volume:

• In Asia 10 out of 11 markets closed lower: Shanghai Comp -1.27%, Hang Seng -1.37%, Nikkei -0.23%
• In Europe 10 out of 13 markets are trading higher: CAC +0.17%, DAX +0.30%, FTSE +0.39%
• Fair Value: S&P +2.30, NASDAQ +15.68, Dow -14.12
• Total Volume: 1.46 million ESU & 83 SPU traded in the pit

_{*As of 7:00 a.m. CST}

Today’s Economic Calendar:

Today’s economic calendar includes the Chicago Fed National Activity Index 8:30 AM ET.

S&P 500 Futures: Sell The Open

Chart courtesy of Scott Redler @RedDogT3 – $spx futures +5 as Strength was sold last week with a few faulty signals.

During Thursday nights Globex session, the S&P 500 futures (ESU19:CME) printed a low at 2996.25, then rallied to print a high at 3009.75, and open Friday’s regular trading hours (RTH) at 3009.25.

The high for the day was printed right on the 8:30 CT bell, and the futures immediately began to trade lower.

We could do a big ‘blow by blow’ of the days traded, but basically the futures made a sequence of lower lows throughout the day, bounce a little, and then got trounced on going into the close, dropping another 20 handles in the final hour. 

In the end, it was a slow grinder to the downside, with the ES closing down 20 handles, or -0.66%, and the Nasdaq closed down -86.25 points. 

This time, the rotation was to buy the Dow futures (YMU19:CME), and sell the S&P and Nasdaq (NQU19:CME) futures.

In terms of the markets overall tone, it was all about the markets lack of buying power. In terms of the days overall trade / volume, nearly 1.5 million futures contracts traded, which isn’t bad for a Friday going into the end of July. 

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As always, please use protective buy and sell stops when trading futures and options.

_{Disclaimer: Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. Any decision to purchase or sell as a result of the opinions expressed in the forum will be the full responsibility of the person(s) authorizing such transaction(s). BE ADVISED TO ALWAYS USE PROTECTIVE STOP LOSSES AND ALLOW FOR SLIPPAGE TO MANAGE YOUR TRADE(S) AS AN INVESTOR COULD LOSE ALL OR MORE THAN THEIR INITIAL INVESTMENT. PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.}