S&P 500 Futures: #ES Globex Drop And Day Session Pop Leads To Quiet Trading

S&P 500

With most Asian and European markets trading higher, the S&P 500 futures (ESH18:CME) traded up to another new all-time contract high at 2747.75 on yesterday’s Globex session, but gave back its gains when it sold off down to 2736.50 at 6:45 AM CT. Total Globex volume was 163,000, leaving the futures pointing to a 0.20% decline on the opening bell. While most U.S. day traders don’t like trading the European shift, there is no doubt some of the best trade setups happen at night. It’s been this way for a long time. Part of this has to do with the lower volumes, and the lack of algorithmic and HFT trading at night.

On the 8:30 CT open the first print came in at 2741.00. There was an initial uptick before a selloff down to 2736.00, and then a bounce up to a lower high at 2741.50. After that, it made a higher low at 2738.00, and then rallied up to a higher high at 2742.00. Volume was decent in the first hour of trade, and as it eased off, that’s when the ES started to back and fill and move higher again.

After a small down tick, the ES made a new high at 2843.00, and then traded up to the Globex high at 2747.75. From there, it pulled back down to 2745.75, and then made another new high by 1 tick at 2548.00. After 2:00 PM CT, the MiM started to show over $200 million to buy, and the ES traded down to 2745.00. At 2:45 The NYSE closing imbalance came out $1.3 billion to buy, and the ES made a new high by 1 tick 2748.25, and then another new high at 2748.50. On the 3:00 cash close the ES traded 2746.50, up 4 handles or +0.15%, and then went on to settle at 2747.25, up 4.75, handles on the 3:15 futures close.

Amazing Five Day Run

From its December 29th (last trading day of 2017) 2667.50 low to yesterday’s 2748.00 high, the S&P 500 futures have rallied 80.50 handles. Over the 5 trading days of the new year the ES has rallied an average of 16.1 handles per-day. It has to be one of the fastest 80 handle moves on record. We always say its money moving back into the mutual funds, but it’s really more about money rolling back into the ETF’s.

In terms of the markets overall tone, it seems unstoppable. With regard to the futures overall volume, it was very low. At 2:45 CT there was only 733,000 ES traded, with 162,000 of that volume coming from Globex. We understand that volume is generally light on Mondays, but that’s very low. In the end he S&P 500 futures (ESH18:CME) settled at 2746.75, up +4.25 handles, or +0.15%; the Dow Jones futures (YMH18:CBT) settled at 25,250, donw -19 points, or -0.07%; the Nasdaq 100 futures (NQH18:CME) settled at 6688.00, up +20.25 points, or +0.30%; and the Russell 2000 (RTYH18:CME) settled at 1562.40, up +0.50 points or +0.03% on the day.

As always, please use protective buy and sell stops when trading futures and options.

• • In Asia 8 out of 11 markets closed higher: Shanghai Comp +0.16%, Hang Seng +0.36%, Nikkei +0.57%
  • In Europe 12 out of 12 markets are trading higher: CAC +0.60%, DAX +0.21%, FTSE +0.39%
  • Fair Value: S&P +0.26, NASDAQ +10.16, Dow -25.63
  • Total Volume: 898k ESH & 752 SPH traded in the pit

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