Shorts Could Be Trapped

Index Futures Net Changes and Settlements:

Foreign Markets, Fair Value and Volume:

• In Asia 10 out of 11 markets closed higher: Shanghai Comp +0.69%, Hang Seng +1.42%, Nikkei +1.19%
• In Europe 7 out of 13 markets are trading lower: CAC -0.26%, DAX +0.11%, FTSE -0.35%
• Fair Value: S&P +4.22, NASDAQ +27.46, Dow +2.09
• Total Volume: 1.23 million ESU & 80 SPU traded in the pit

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

Today’s Economic Calendar:

Today’s economic calendar includes GDP 8:30 AM ET, Jobless Claims 8:30 AM ET, Corporate Profits 8:30 AM ET, Pending Home Sales Index 10:00 AM ET, EIA Natural Gas Report 10:30 AM ET, Kansas City Fed Manufacturing Index 11:00 AM ET, Farm Prices 3:00 PM ET, Fed Balance Sheet & Money Supply 4:30 PM ET.

S&P 500 Futures: New Lows On The Close

Chart courtesy of Scott Redler @RedDogT3 – $spx quick micro and bigger look as we try and figure out what’s next.

Strength during Tuesday nights Globex session bled through into Wednesday’s regular trading hours, but it couldn’t hold on. After the 8:30 CT bell, the S&P 500 futures rallied to test the Globex high at 2939.00, only making it as high as 2936.75, and then turned south for the rest of the day.

The first stop on the way down was at 2924.25, followed by a sideways range trade that lasted until 12:30, then another move lower to 2921.50. From there, the futures did a little back and fill up to 2925.25, before taking out the Globex low at 2917.50 by 2 ticks. 

Going into the close, when the MiM reveal came out showing $400 million to buy, the ES continued to trade lower. The futures would then go on to make another new low, printing 2916.75 on the 3:00 cash close, and 2918.00 on the 3:15 futures close.

SIGN UP HERE TO GET THE FULL MRTOPSTEP OPENING PRINT!

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.}