Trump Still Not Happy With Fed

Index Futures Net Changes and Settlements:

Foreign Markets, Fair Value and Volume:

• In Asia 6 out of 11 markets closed higher: Shanghai Comp +0.46%, Hang Seng -1.07%, Nikkei +0.38%
• In Europe 11 out of 13 markets are trading higher: CAC +0.51%, DAX +0.26%, FTSE +0.72%
• Fair Value: S&P +2.57, NASDAQ +24.71, Dow -4.70
• Total Volume: 1.6 million ESZ & 1,000 SPZ traded in the pit

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

Today’s Economic Calendar:

Today’s economic calendar includes Jobless Claims 8:30 AM ET, Philadelphia Fed Business Outlook Survey 8:30 AM ET, Current Account 8:30 AM ET, Existing Home Sales 10:00 AM ET, Leading Indicators 10:00 AM ET, EIA Natural Gas Report 10:30 AM ET, Fed Balance Sheet & Money Supply 4:30 PM ET.

S&P 500 Futures: Fed Day Dip and Rip

Chart courtesy of Scott Redler @RedDogT3 – $spx futures -6 as we see if the “Hawkish cut” is enough to keep the current market composure intact.

During Tuesday nights Globex session, the S&P 500 futures (ESZ19:CME) traded down to 3000.25, then up to 3008.75, and printed 3003.25 on Wednesday mornings at 8:30 CT futures open. 

After the bell the ESZ sold off down to 2999.50, rallied a few handles, then dropped down to an early low at 2997.50. From there, the futures again rallied a few handles, printed 2998.25 at 8:45 am, and then traded up to 3004.50 at 9:36 am. 

Once the early high was in, the futures slowly sold off down to 2995.00 at 12:36, and then rallied 6 handles up to 3001.00, before dipping back down to 2996.50. When the fed announced a 25 basis point rate cut, the ES popped up to 3005.00. 

After the rally, the futures sold off down to new lows at 2989.25, then rallied back up to the vwap at 3004.00, and made a series of lower lows down to 2980.75. When it was clear the low had been established, the ES initially traded up to 2991.50, then popped up to 3009.50 at 2:40 when MiM went from over $600 million to buy, to $279 million to buy, then back to $485 million to buy.

On the 2:45 cash imbalance reveal the ES traded 3010.00 as the final MiM showed $477 million to buy, then traded 3010.50 on the 3:00 cash close, and went on to settle at 3009.00, +0.75 handles, or up +0.02% on the day. 

In the end, the overall tone was weak early in the day and after the fed headlines hit the tape, but recovered nicely after 2:15, taking 2980.75 up to 3010.75, a face ripper of a rally. In terms of the days overall, trade total volume was 1.6 million ESZ’s traded, which is ok, but low for the size of the move.

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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.}