S&P 500 Futures: ‘Switch Day’ March Contracts Go Front Month / Potential Government Shutdown Looms

Charts, Commentary, News, Stocks, Technical Analysis, The Opening Print

As the old saying goes, ‘another day, another day’, but unless a deal gets cut by the December 9th deadline, a government shutdown will occur. It seems like there is no shortage of headline news recently, and it doesn’t seem to be slowing.

After trading down to 2620.00 on Globex, the ES short covered before the 8:30 CT futures open. On the bell, the futures opened at 2623.50 and then traded up to 2631.25, pulled back below the vwap down to 2626.00, made a higher high at 2632.25. After that, the ES sold off under the vwap two more times and made an early low at 2624.00. From there, it rallied, making two new high at 2633.25 and 2633.57, and completing a MrTopStep 10 handle rule.

After the high was in, the ES sold back off under the vwap down to a higher low at 2626.00 around 11:30 CT. The next move was up to a new high at 2634.50 around 1:30 CT. When you look at the ES chart it looks like the futures have been doing some back and fill at the vwap the last few days. Late in the day the MiM started to show $450 million to sell, and the ES sold off down to 2627.75, 3 ticks under the vwap, and then bounced back up to 2630.00 on the 3:00 cash close.

In the end it was a pretty uneventful day that saw the ES above and below the vwap several times. The S&P 500 futures (ESZ17:CME) went on to settle at 2629.25, up +1.00 handles, or +0.03%; the Dow Jones futures (YMZ17:CBT) settled at 24,157, down -18 points, or -0.07%; the Nasdaq 100 futures (NQZ17:CME) settled at 6293.00, up +21.25 points, or +0.33%; and the Russell 2000 (RTYZ17:CME) settled at 1508.10, down -8.30 points or +0.55% on the day.

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 -0.67%, Hang Seng +0.28%, Nikkei +1.45%
    • In Europe 8 out of 12 markets are trading higher: CAC +0.03%, DAX +0.22%, FTSE +0.12%
    • Fair Value: S&P +0.33, NASDAQ +16.34, Dow -13.54
    • Total Volume: 1.25m ESZ & 3.7k SPZ traded in the pit


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Danny Riley (2398 Posts)

Danny Riley has worked in the futures and options industry for 38 years, including the CBOT’s bond room, where he worked for several of the Market Wizards. He went on to build the largest volume desk in the S&P 500 Index Futures, serving some of the largest banks and hedge funds, the UBS program trading business, and some of the world's top individual traders. As a leader and co-creator of the MrTopStep IM-Pro Trading Room, he shares trading ideas and breaking market news live from the floor with our other professional traders and new traders eager to experience the power of collective intelligence. Join us today and get the edge only social trading can give you.

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