The day started with a big jump on Globex Sunday night after the senate passed the tax bill over the weekend. The Asian markets closed mixed, and the Stoxx Europe 600 gained 1%. After a hard selloff down to 2605.00 on Friday, the ES had a big bounce and then rallied all the way up to a new all time high at 2665.50, a 60.5 handle move from Friday’s low to Mondays high. Volume was oversized with 1 million emini S&P futures traded at 11:00 CT.
JP Morgan and Goldman Sachs (NYSE:GS) both surged on the news. After making the new all time highs the S&P sold off down to 2650.75 and then started to ‘back and fill’. Right around 1:00 pm, some weakness made its way into the market, and by the 3:15 close, the ES had traded all the way down to 2637.00.
We are going to do our best not to do all the ‘twists and turns’ as we have done in the past and try and stick to the larger intra-day moves and the highs and lows. At the early highs the S&P 500 futures (ESZ17:CME) were up 21.25 handles, and the Nasdaq 100 futures (NQZ17:CME) were up 39.00 points.
As always, please use protective buy and sell stops when trading futures and options.