The Asian markets closed mixed and Europe is trading modestly higher . If there is anything apparent in the S&P 500 futures it is that no one is playing. Let’s face it, ladies and gentlemen, most people are trying to get a vacation in before the kids go back to school. No one is in a hurry to turn on their screens and it’s affecting all the futures and options markets right now. Low volume and the Summertime Blues.
Yesterday was the first time all year that the S&P futures (not S&P cash) closed down 3 days in a row. While I have been talking about it for a long time, the event went pretty unnoticed. It did look like the ESU tried to bounce late in the day but it was too little, too late.
So where’s that put the S&P? Right back where it’s been. There is nothing sticking out that says the S&P is about to fall apart. Like most of the selloffs after a big push the ES has to pull back, rebuild thrust and get people short.
Over the last few days the NASDAQ has been weak and seems to be the leader but as we go into the later parts of the week we think the index market could start to bounce. On the down side most people are looking at the 1676 -1677 area and then the old low of 1670 for support.
We think it’s possible the S&P will remain pulled back in the first part of the day and then rally. The first 3-day decline has traders less interested in selling the early rallies and more in buying the early weakness. Flip a coin, folks — we’re in for another very long day.
Lastly, please find an hour to look at the PitBull speaking at Amherst College. He has been my friend for a long time but I still love hearing him talk. “A Market Wizard Speaks: Marty Schwartz speaks at Amherst College, Spring 2013.” At Marty’s request, we are offering the full video free of charge to you and the world. Few people trade as well as Marty does. Even fewer are willing to share what they’ve learned.
Here are your morning numbers, a few minutes delayed:
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Total volume: 1.38mil ESU and 5.4k SPU traded
Morning Headline: “S&P 500 Futures Seen Higher In Front of Jobless Claims Number”
Economic calendar: Jobless claims, natural gas inventories, Fed balance sheet/money supply, chain store sales, Bloomberg CCI, a 30-year bond auction and earnings from Rio Tinto, Dean Foods, T-Mobile, Lions Gate Entertainment, Nvidia, Priceline.com, Annie’s
Click here for yesterday’s Closing Print video.