Tech Weighs on S&P, But Money Rotates to Dow, Russell

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Despite some good ES rips, the weakness in the NQ was overwhelming. After a three-week winnings streak, it was a big rotation out the Nasdaq (and somewhat the ES) and into the Dow and Russell. Or should I say the beaten down Russell?  

The YM settled at 39,858.00, up 275 points or  0.69% and the Russell 2000 (RTYU4) settled at 2,054.10, up 10.70 points or +0.54%. There has been a big run in the hot names and Nvidia pulled the ES and NQ down. 

Again, I wrote about how far the S&P has gone as a warning not to get overly bullish into a push. I don’t think the ES will go down a lot, but it did start taking out the sell stops at the 5520.00 level. 

MiM and Daily Recap

The ES traded down to 5519.75 and opened Monday’s regular session at 5531.00. After the open, the ES traded up to 5533.75, sold off down to 5525.75, then shot up to 5558.50 at 10:10 and then rallied up to a lower high at 5552.50 at 11:20 as Nvidia continued to fall, pulled back to 5544.25 at 11:28 and then rallied up to another lower high at 5552.00 at 11:44. After the up-tick, the ES sold off down to 5544,50, rallied up to another lower high at 5551.00 at 12:38 and then sold off down to a new low at 5524.25 at 1:36. From there, it rallied up to 5533.75 at 1:40, made a new low at 5522.50 at 2:20 and then rallied up to 5535.00 at 3:04 before it started taking out the sell stops under 5520.

The ES traded down to 5525.00 at 3:48 and after the 3:50 cash imbalances showed $1.1 billion to buy, the ES sold off down to 5514.75 at 3:58 and traded 5516.00 on the 4:00 cash close. After 4:00, the ES traded down to 5510.25 and settled at 5515.75, down 18.5 points or -0.33%. The NQ settled at 19,752.50, down 230.25 points or 1.15%, the 10 Yr note settled at 110.200, up 0.040 points or +0.11%, Gold (GCQ4) settled at 2,347.20. up 16.00 or +0.69%, crude oil (CLQ4) settled at $81.75, up 1.02 or +1.26%, Bitcoin (BTCN4) settled at 59,880, down 4,930 points or -7.61% on the day.

In the end, no one could even say why the ES rallied from its 5525.75 low after the open up to the 5558.50 high — 32.75 point rally in only a few minutes — but I think it’s another example of what I call an ‘algo blip.’ Out of nowhere, the ES rallies or drops 20 to 30 points. Why? Because it can, that’s why. In terms of the ES’s overall tone, it acted OK when you consider how much the NQ was down. In terms of the ES’s overall trade, volume was steady at 1.339 million contracts traded.

Guest Post — Niels at Tradrr

Coming into the week after Roll with traders set to trade the U contract for the NQ. 

Sunday night set out to break below last week’s range and build out 2 distributions coming into Tuesday to start the week. 

No significant events till the latter half of the week could keep the next few days in a state of profit taking to clean up some poor structure to finish up the month.

For more Tradrr content, click this link.

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Disclaimer: Charts and analysis are for discussion and education purposes only. I am not a financial advisor, do not give financial advice and am not recommending the buying or selling of any security.

Remember: Not all setups will trigger. Not all setups will be profitable. Not all setups should be taken. These are simply the setups that I have put together for years on my own and what I watch as part of my own “game plan” coming into each day. Good luck!