Index Futures Net Changes and Settlements:
Foreign Markets, Fair Value and Volume:
- In Asia 6 out of 11 markets closed lower: Shanghai Comp -0.01%, Hang Seng -0.27%, Nikkei -0.16%
- In Europe 11 out of 13 markets are trading higher: CAC +0.08%, DAX +1.11%, FTSE +0.39%
- Fair Value: S&P -2.04, NASDAQ +1.83, Dow -50.11
- Total Volume: 1.31 mil ESM & 1.12k SPM traded in the pit
Today’s Economic Calendar:
Wednesday: ADP private payrolls, April (+193,000 expected; +214,000 previously); Federal Reserve interest rate decision (1.5%-1.75% fed funds range previously, no change expected).
S&P 500 Futures: Higher Rates, Trade Wars, Trump Investigations, Iran and Israel Could Give ‘Sell In May And Walk Away A New Meaning’
On Globex, the S&P 500 futures traded up to 2653.75, and made a low at 2640.00 just before Tuesdays 8:30 futures open. The first print of the day came in at 2641.00. After the bell, the futures rallied a few ticks up to 2642.25, sold off down to 2635.75, and then traded above the vwap to 2642.75. From there, the ES then sold off down to a new low at 2643.00, made three lower highs at 2640.75, 2639.25 and 2638.75, and then got hit by several small sell programs that pulled prices down to a new low at 2626.50.
After the low, the ES popped up to 2634.50, traded in a 3 handle range for about an hour, sold off down to 2627.50, rallied up to 2643.00, and at 12:07 CT sold off down to a new low at 2623.25. At 1:05, the ES had popped back up to 2641.75, and then up to 2644.00, a +20.75 handle rally off the lows. After another small pullback, the ES traded up to a new high at 2648.50, and then pulled back down to 2644.00 before trading back up to 2647.75, and then back down to 2639.50 as the MiM went from from sell $306 million to sell $464 million.
The ES traded 2645.00 on the 2:45 cash imbalance reveal, as the MiM ‘flipped’ to buy $167 million. On the 3:00 cash close the ES traded 2652.25, and then went on to settle at the day up +6 handles, or +0.23%.
In the end, the key to the day was the NQ, it didn’t want to go down all day. The trade was all part of a big rotation; sell Dow / buy Nasdaq, and the S&P just went for the ride. ES volume was a little better than Monday’s, 1.29 million vs. 1.24 million.
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