Stocks Rally But Uncertainty Abounds

Commentary, News

Index Futures Net Changes and Settlements:

ContractSettlementNet Change+/-%
S&P 500 (ESU19:CME) 2876.00+46.00+1.62%
DowJones (YMU19:CBT)25,924+374+1.46%
Nasdaq 100 (NQU19:CME)7515.50+130.25+1.76%
Russell 2000 (RTYU19:CME)1499.40+19.50+1.31%

Foreign Markets, Fair Value and Volume:

  • In Asia 6 out of 11 markets closed lower: Shanghai Comp -0.32%, Hang Seng +0.08%, Nikkei -0.33%
  • In Europe 13 out of 13 markets are trading higher: CAC +1.14%, DAX +1.04%, FTSE +0.71%
  • Fair Value: S&P -0.74, NASDAQ +6.38, Dow -53.10
  • Total Volume: 2.59 million ESU & 540 SPU traded in the pit

*As of 7:00 a.m. CST

Today’s Economic Calendar:

Today’s economic calendar includes MBA Mortgage Applications 7:00 AM ET, Charles Evans Speaks 9:30 AM ET, EIA Petroleum Status Report 10:30 AM ET, 10-Yr Note Auction 1:00 PM ET, and Consumer Credit 3:00 PM ET.

S&P 500 Futures: Globex Rip

Chart courtesy of Stewart Solaka @Chicagostock$ES_F Closed below its 3D pivot on Tuesday. So long as market continues to close below, trend=down. If looking for a turn, need 2 closes above. Wednesday’s 3D pivot range narrowed within 68-73, has Tuesday’s longs walking a tight rope. Tight pivots = opp for volatility expansion.

During Monday nights Globex session, the S&P 500 futures traded down to a low at 2775.75 due to continued weakness from the day session, and a selloff in Asian stocks. U.S. markets found some strength when European markets opened stronger, and the ESU went on to stage a powerful 90 handle rally that would last the rest of the night session, eventually topping out at 2865.25.

Buying continued into Tuesday’s regular trading hours (RTH), and the ES printed 2862.50 on the 8:30 CT bell, and rallied to a new high at 2872.75 in the first 15 minutes of trading. From there, things turned choppy, and the futures began to grind lower amidst a series of 20 point swings, first trading down to 2850.50, then, after a pop back up to 2868.25, down to 2864.

Once the morning low was, in things started to settle down, and the ES slid into a sideways range for the next few hours.

Just after 1:00 CT, the ES found some strength, and started heading up to test the highs. Even with the early MiM showing close to $1 billion to sell, the futures were able to push through and print a new daily high at 2883.50.

When the MiM reveal flipped to show $275 million to buy, the ES held to close on its highs, and would go on to print 2881.50 on the 3:00 cash close, and 2876.00 on the 3:15 futures close, up +46 handles on the day.


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As always, please use protective buy and sell stops when trading futures and options.

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Danny Riley (3538 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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