Weak Global Markets

Index Futures Net Changes and Settlements:

Foreign Markets, Fair Value and Volume:

• In Asia 10 out of 11 markets closed lower: Shanghai Comp -0.10%, Hang Seng -0.16%, Nikkei +0.08%
• In Europe 13 out of 13 markets are trading higher: CAC +0.81%, DAX +0.10%, FTSE +1.24%
• Fair Value: S&P -1.21, NASDAQ +4.70, Dow -38.90
• Total Volume: 1.39mil ESH & 238 SPH traded in the pit

Today’s Economic Calendar:

Today’s economic calendar includes the 8-Week Bill Settlement, FOMC Meeting Begins, International Trade in Goods 8:30 AM ET, Retail Inventories 8:30 AM ET, Wholesale Inventories 8:30 AM ET, Redbook 8:55 AM ET, S&P Corelogic Case-Shiller HPI 9:00 AM ET, and Consumer Confidence 10:00 AM ET.

S&P 500 Futures: CAT Helps Drag The S&P Lower

Chart courtesy of @Chicagostock – $ES_F Double top in place after 2671 gap filled on Friday and today’s lower open leaving buyers trapped above. Sell stops below Thursday low 2626 sees next support into 2618. Over 39 needed for shot at filling gap to 56.

The S&P 500 futures sold off down to 2636.00 on Sunday’s Globex session, and opened Monday’s regular trading hours at 2638.50, down -25 handles. After the bell, the ES got hit by several sell programs, and pulled back all the way down to 2622.25, down 41.25 handles, going into 11:00 CT.

Once the low was in, the futures ran some buy stops above the vwap, up to the 2639.50 area, pulled back down to 2632.50, then rallied all the way up to 2642.00, 20 handles off the low.

After 2:00, the MiM went from over $250 million to sell, to $630 million to sell, and by 2:53 CT had traded down to 2635.50. The ES went on to trade 2639.50 on the 3:00 cash close, and settled the day at 2642.00 on the 3:15 futures close, down -21.25 handles, or -0.79%, on the day.

Daily HotSpots

HotSpots are times during the market trading session that for the past XX days have consistently moved in one direction or the other. These HotSpots are published each morning pre-market. The next day, a results post is also published and weekly a summary post.

CAUTION: This data is under development and provided only for research and teaching purposes

If you have questions about HotSpots you can contact us at info@mrtopstep.com.

Lookbacks:

The lookback period (number of days) is set at 21,13,11,8 and 5 days. A heat-map is generated for each of these lookback periods, the best trade from day is scored.
The period of time that has consistently produced the best results becomes the hotspot for that look back. There are also different look-back types like Taylor and Taylor Plus.
Taylor cycles are usually 3-day cycles. A Taylor-5 look-back would use the last 5 trading days skipping back by 3 trading days. Taylor Plus uses calendar days so weekends and none
trading days are counted as part of the skip count. If a lookback period falls on a none trading day, it is not used so a TaylorPlus will continue skipping back until 5 trading days are found for the heatmap calculation.

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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.}