Trump Pushes Back China Tariffs By Two Weeks

Index Futures Net Changes and Settlements:

Foreign Markets, Fair Value and Volume:

• In Asia 6 out of 11 markets closed higher: Shanghai Comp +0.75%, Hang Seng -0.26%, Nikkei +0.75%
• In Europe 12 out of 13 markets are trading higher: CAC +0.51%, DAX +0.60%, FTSE +0.29%
• Fair Value: S&P +2.74, NASDAQ +28.14, Dow -6.40
• Total Volume: 1.4 million ESU & 208 SPU traded in the pit

_{*As of 7:00 a.m. CST}

Today’s Economic Calendar:

Today’s economic calendar includes the 52-Week Bill Settlement, CPI 8:30 AM ET, Jobless Claims 8:30 AM ET, EIA Natural Gas Report 10:30 AM ET, 30-Yr Bond Auction 1:00 PM ET, Treasury Budget 2:00 PM ET, Fed Balance Sheet & Money Supply 4:30 PM ET.

S&P 500 Futures: Buy The Dips

Chart courtesy of Stewart Solaka @Chicagostock

When the S&P 500 futures rallied on Tuesday’s close, I had a feeling that my call about #ES 3000.00 was getting close to being a reality. 

After trading down to 2972.00 Tuesday night on Globex, the futures traded up to 2987.00 at 11:00 pm, and printed 2982.00 on yesterday’s 8:30 futures open. The first move after the bell was a shallow break down to make the RTH at 2974.75. From there, the ESU zig-zagged up to 2987.00 (Globex high), then began to grind higher, eventually trading all the way up to 2996.75 at 12:41 CT. 

Once the new high was made, I put this out in the MTS forum… 

(IMPRO:Dboy:(12:37:29 PM) : I think we pull back a bit here)  

…and the ES pulled back down to 2990.50 just before 2:00 CT. After 2:00, the futures traded back up to 2997.25, as the MiM flipped from $125 million to sell to $400 million to buy. 

On the 2:45 cach imbalance reveal, the MiM had grown to nearly $2 billion to buy MOC, and the ES traded up to 3000.75, exactly what I was calling for. It would then go on to print 3000.50 on the 3:00 cash close, and settle the day on new highs at 3002.25 on the 3:15 futures close, up +23.75 handles, or +0.79%.

In terms of the days overall tone, the ES was firm, someone was working a big buy program all day. In terms of the overall trade, volume was lower than Tuesday, with only 1.40 million futures contracts traded. 

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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.}