Thanksgiving Thin-To-Win
The S&P 500 futures (ESZ19:CME) saw a very slow low volume grind in front of the Thanksgiving Holiday. During Wednesday’s session, the futures gapped higher, then pulled back a few handles before rallying again. It was pretty much the same pattern we saw all week.
Going into the final hour of Wednesdays trade, the ES had spent most of the afternoon hovering around the highs, and continued to hold strong, even when the early MiM (MrTopStep Imbalance Meter) showed more than $1.3 billion to sell MOC.
When the final cash imbalance reveal came out at $1.6 billion to buy, the ES was trading at 3151.75. It would then go on to print 3153.25 on the 3:00 cash close, and settle the day at 3153.75 on the 3:15 futures close, up +10 handles.
Trump Makes A Move After The Bell
All in all it was a quiet day. Then, just after 6:00 p.m., a headline hit the tape saying that President Trump signed a Hong Kong human rights bill, despite China’s government promising to retaliate if it became law. The futures subsequently sold off down to 3141.00 and then traded back up to the 3146.00 area.
During Thursday’s abbreviated holiday trading session, the futures ground back up to the 3151.00 level, only 4 handles off the all-time contract high.
In terms of Wednesday’s overall tone; the ES traded higher all day, until the late headline hit. In terms of Thursday’s trade, the futures just drifted back up.
Despite the headlines, Wednesday was a textbook holiday thin-to-win market, with only 917,00 futures contracts traded, 163,000 of which came from the overnight Globex session.
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