Yellen Says Rising Deficit Unsustainable: ‘If I Had A Magic Wand, I Would Raise Taxes’

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Index Futures Net Changes and Settlements:

Foreign Markets, Fair Value and Volume:

• In Asia 7 out of 11 markets closed higher: Shanghai Comp +0.13%, Hang Seng +1.75%, Nikkei -1.06%
• In Europe 10 out of 13 markets are trading higher: CAC +0.10%, DAX +0.65%, FTSE +0.14%
• Fair Value: S&P -0.35, NASDAQ +7.76, Dow -36.41
• Total Volume: 2.45mil ESZ & 993
  SPZ traded in the pit

Today’s Economic Calendar:

Today’s economic calendar includes 8:30 am Weekly jobless claims, 8:30 am Productivity, 8:30 am Unit labor costs, 9:45 am Markit manufacturing PMI, 10 am ISM manufacturing index, 10 am Construction spending, and Motor vehicle sales.

S&P 500 Futures: ‘Fast & Furious’ #ES Rallies 104 Handles In 1 1/2 Days, Then Dumps 30 Late In The Day

After the S&P 500 futures dropped down to 2633.00 during Tuesday’s day session, the futures rallied all the way up to 2715.75 on Globex Wednesday morning, up +30.50 handles on the day. The first print off the 8:30 CT futures open was 2711.75. After the bell, the benchmark futures pulled back down to 2706.25 in the first 5 minutes, then made three higher highs up to 2729.25, followed by a series of lower lows down to 2708.25 just after 11:00, as the NQ sold off nearly 100 points from its high.

After the low was in, the ES ‘quickly’ rallied up to a new high for the day at 2732.00, up +42.25 handles, or up +1.58%. From there, the futures sold off 9.5 handles down to 2722.50, and then made a new high by two ticks at 2732.50. After the new high the ES pulled back down to 2725.50, and at 1:12 was making another new high 2733.75, and then up to 2737.00 at 1:20, up +104 handles from Mondays low.

After another 5 handle pullback down to 2728.75, the ES made a new high by 1 tick at 2737.25, and then sold off down to 2719.25 at 2:40, as the MiM showed $218 million to buy. On the 2:45 cash imbalance reveal the ES traded 2720.00 as the MiM flipped to sell $404 million. The futures went on to trade 2711.50 on the 3:00 cash close, and settled at the afternoon low tick of 2705.75 on the 3:15 futures close, up +20.50 handles, or +0.76% on the day.

In the end, the ES had a good rally, but sold off hard Wednesday afternoon. This pattern is consistent with the recent price action. In terms of the days overall traded, 2.45 million ES contracts traded, which is pretty much inline with the recent daily averages.

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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.}