Well, the S&P 500 futures (ESU17:CME) down ticked going into Thursday’s close when the MiM went from over $200 million to buy to $300 million to sell, and then rallied going into the 3:15 futures close. On Friday morning the first print on the 8:30 futures was 2446.50, up 6.5 handles, on total Globex volume of 185,000 ES (ESU17:CME) contracts traded.
After the open, the ES ran buy stops up to 2453.50, back to Tuesday’s 2453 settle, and then started to weaken initially, trading down to the 2450.00 area. After a few small pops, the ES got pounded all the way down to 2471.75, 2441.25, and then made its low at 2441.00. Once the low was in, it was a slow grind back above the vwap at 2447.50.
After a pull back below the vwap, the ES traded 2445.00, rallied up to 2449.50, and then started to drop after the MiM ( https://mrtopstep.com/l/mim/ ) started out showing $81 million to sell and then dropped to over $300 million for sale. From there, the ES sold back off down to its previous low at 2445.00, but really started taking a hit as the MiM went all the way to sell $881 million, taking the futures all the way down to 2441.50. The actual MOC came out Sell $ 650 million.
Another Late Day Sell-Off
Between the Gary Cohn spoof about quitting the While House, all the talk about a government shutdown, and the Yellen and late day Draghi headlines saying there are still significant monetary accommodations needed, there were a few decent ups and downs, but in the end, the ES did another late day sell off. At the end of the day, the S&P 500 futures (ESU17:CME) settled at 2442.50, down -0.25 handles, or -0.01%, the Dow Jones futures (YMU17:CBT) settled at 21809, up +23 points, or 0.10%, and the Nasdaq 100 futures (NQU17:CME) settled at 5825.50, down 20.5 points, or -0.35 %.
While You Were Sleeping
Overnight, equity markets in Asia traded mixed, with a slight bias to the upside, while most majors in Europe are trading lower this morning due to the effect tropical storm Harvey is having on energy markets around the world.
In the U.S., the S&P 500 futures opened last night’s globex session at 2442.00, and has been trading sideways in a 9 handle range. As of 6:50am CT, the last print in the ES is 2443.75, up +1.25 handles, with 115k contracts traded.
In Asia, 6 out of 11 markets closed higher (Shanghai +0.94%), and in Europe 10 out of 12 markets are trading lower this morning (FTSE -0.08%).
This week’s economic calendar consists of 28 reports, 14 U.S. Treasury auctions and announcements, and 1 Fed speaker. Today’s economic calendar includes International Trade in Goods, Dallas Fed Mfg Survey, a 4-Week Bill Announcement, a 6-Month Bill Auction, a 2-Yr Note Auction, a 3-Month Bill Auction, and a 5-Yr Note Auction.
Our View
Well, the ES sold off down to the 2437.00 area early Sunday night, and rallied up to 2443.00 soon after. I still think the ES is making a big ‘back and fill’ pattern, but for the ES to really start going up, it has to hold and close above 2450.00. This week has a little bit of everything, some fed speak, and the Friday jobs report. Our view remains unchanged, you can sell the gap ups and buy weakness, or just buy the weakness.
PitBull: CLV OSC 4/-7 turns down on a close below 48.50; ESU OSC -5/-9 turns up on a close above 2435.50; VIX OSC -9/9 turns down on a close below 11.88.
Market Vitals for Monday 08-28-2017
[gview file=”https://mrtopstep.com/wp-content/uploads/2017/08/Market-Vitals-17.08.28.pdf”]
As always, please use protective buy and sell stops when trading futures and options.
- In Asia 6 out of 11 markets closed higher: Shanghai Comp +0.94%, Hang Seng +0.05%, Nikkei -0.01%
- In Europe 10 out of 12 markets are trading lower: CAC -0.24%, DAX -0.27%, FTSE -0.08%
- Fair Value: S&P -0.97, NASDAQ +2.41, Dow -15.62
- Total Volume: 1.19mil ESU, and 500 SPU traded in the pit
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