'S&P 500 Futures; Mid-Month Rebalance and the Crude Oil Options Expiration Squeeze Job'

on January 14, 2016

HIGH: 1927.50
LOW: 1871.00
LAST: 1917.50 UP 36 Handles
TOTAL VOLUME: 3mil ESH, and 5k SPH traded in the pit.

FOR TOMORROW:
Busiest day of the of the week in terms of economic reports and fed speak.
PPI-FD, Retail Sales, Empire State Manufacturing Survey, William Dudley Speaks, Industrial Production, Consumer Sentiment, Business Inventories, John William Speaks, Baker Hugher, and Ron Kaplin from the FED Speaks.

Guess what traders? This week is not over yet. We still have the January Options Expiration tomorrow. The stats show the Friday of the expiration UP 18 / DOWN 14 of the last 32 occasions.

As for today…56 Handle Rally? It was a combination of the S&P bering extremely over sold, the crude oil options expiration, and tomorrows January options expiration. It was a long overdue RIP!

Is that the low? Too early to tell, but I am looking for a reversal of the weak Friday/Monday trade.

The CME is closed Monday, but China is reporting its GDP Tuesday morning, or on Monday. So while we are going up, we dont think its clear just yet.

MrTopStep rule in effect – It takes days and weeks to knock the S&P down, but only 1 to bring it back up.