S&P Falls After Six Day Winning Streak

Index Futures Net Changes and Settlements:

Foreign Markets, Fair Value and Volume:

• In Asia 10 out of 11 markets closed higher: Shanghai Comp +0.46%, Hang Seng +1.81%, Nikkei +0.21%
• In Europe 10 out of 12 markets are trading lower: CAC -0.26%, DAX -0.62%, FTSE +0.02%
• Fair Value: S&P -0.45, NASDAQ +5.04, Dow -12.27
• Total Volume: 1.4mil ESH & 842 SPH traded in the pit

Today’s Economic Calendar:

Today’s economic calendar includes MBA Mortgage Applications 7:00 AM ET, Redbook 8:55 AM ET, Patrick Harker Speaks 9:00 AM ET, PMI Composite Flash 9:45 AM ET, Existing Home Sales 10:00 AM ET, FOMC Minutes 2:00 PM ET, and Neel Kashkari Speaks 8:15 PM ET.

S&P 500 Futures: Trade The Gaps And Sell The Rips

As we said in yesterday’s view, we want to fade the gaps. After trading down to 2709.00 on Globex at 4:07 am Monday morning, the ES traded up to 2722.00, and opened at 2716.50 on the 8:30 CT futures open.

Initially, the ES traded up to 2729.00 10 minutes into the day session, pulled back down to 2724.00, and then rallied up to 2732.25 at 8:52 am, up 14.25 handles from the open. After a few pullbacks under the vwap, down to the 2721.50 level, the ES popped back up to 2728.75, and then pulled back down to 2717.75 before stutter stepping up to a new daily high at 2737.75.

After another small pullback, and a lower high at 2737.00, the ES sold off to 2725.00. There was one last pop up to 2732.50 as the MiM started showing $800 million to sell, then the futures sold off and double bottomed at 2721.75.

A wave of sell programs came in and hit the ES all the way down to 2705.75 at 2:21, down -32.25 handles off the high. After the low the ES rallied up to 2720.00, pulled back down to 2709.00, traded 2727.00 on the 3:00 cash close, and then went on to settle at 2714.00 on the 3:15 futures close, down 14.5 handle, or -0.53%.

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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.}