S&P 500 Says Good-Bye August
Heading into today’s trade that stats were not good as the last day of the trading month had closed lower on eight of the last nine occasions. Overnight the S&P futures (ESU15:CME) opened and went straight down losing more than 27 handles in just over 30 minutes before rebounding light early in the Asian session and holding its early range in the Euro session. The index futures opened the regular session down more than 10 handles and proceeded to trade down off the open back toward the overnight low before finding a low at 1962 and in turn bouncing back to 1983.75 all within the first two hours of the day. From there the index traveled 20 handles lower throughout the afternoon into the close and even a market-on-close (MOC) imbalance that exceeded $1.2 billion to the buy was not enough to give the market a sustainable pop as it closed near its session low at 1963.25 down 26.50 handles on the day. Volume was relatively strong but down for the fifth consecutive day as the end of month trade offered very little of a bid even though funds entered the month’s close stacked to the short side. Also the ESU5 placed a third consecutive lower high, while making a lower low from Friday.
Turn-Around Tuesday
Heading into tomorrow’s session the calendar is fairly light, of particular note is the fact that 18 of the last 25 weeks has seen Tuesday close in the opposite direction than Monday, this would offer some bullish sentiment tomorrow as well as the fact that tomorrow marks the first trade of September, the first day of a month being generally bullish however somewhat less so for September in particular.
Seen In The MrTopStep IM Pro Room Today:
ICEchat ( 12:23:24 PM ): (bshepard) rich.canlione: could be interesting for Crude new low on move in Aug, new monthly low & new Quarter low, but closing above July close perhaps – 47.12 is July close
Floor Pivots For Tomorrow’s RTH E-mini
R3 2012.33
R2 1991.08
R1 1996.00
PP 1969.83
S1 1955.92
S2 1948.58
S3 1927.33