The Rosh Hashanah Rip

Index Futures Net Changes and Settlements:

Index Futures

Foreign Markets, Fair Value and Volume:

• In Asia 9 out of 11 markets closed lower: Shanghai Comp -0.33%, Hang Seng -0.29%, Nikkei -0.27%
• In Europe 10 out of 13 markets are trading higher: CAC +0.39%, DAX +0.09%, FTSE +0.17%
• Fair Value: S&P +0.58, NASDAQ +2.76, Dow +13.12
• Total Volume: 1.26mil ESU & 943 SPU traded in the pit

Today’s Economic Calendar:

Today’s economic calendar includes MBA Mortgage Applications 7:00 AM ET, PPI-FD 8:30 AM ET, Atlanta Fed Business Inflation Expectations 10:00 AM ET, EIA Petroleum Status Report 10:30 AM ET, Lael Brainard Speaks 12:45 PM ET, 10-Yr Note Auction 1:00 PM ET, and Beige Book 2:00 PM ET.

S&P 500 Futures: NQ Holds 50 Day Moving Average

S&P 500 Futures

Well, the S&P 500 futures rallied initially on Globex Monday night, but sold off down to 2869.50, down -10.75 handles, just before Tuesday mornings 8:30 CT open. The first print of the day came in at 2870.50, followed by a selloff down to 2867.25 at 9:35, then a rally up to 2872.00. From there, the ES made a higher low (Riley Retest), and at 10:31 traded up to 2881.50 as the Nasdaq started to rip higher.

After the high the futures pulled back down to 2876.50, and by 11:17 had reversed and traded all the way up to 2893.00. After a small pullback down to 2889.25 the ES ‘double topped’ at the 2893.00 level, pulled back down to 2887.50, and then rallied up to a lower high at 2892.50 as the NQ pulled back slightly.

At 2:00 the MIM started out showing $170 million to buy, and then moved up to $222 million to buy. As the MIM decrease down to $140 million to sell on the cash imbalance reveal, the ES sold off down to 2887.25. The futures then went on the print 2889.00 at 3:00, before settling the day at 2890.00, up +9.75 handles, or +0.34%.

In the end the Jewish Holiday gave the Nasdaq the reprieve that it needed. Was it a short squeeze or new buying? I think it was a little of both. In terms of the ES and NQ’s overall tone, they sold off overnight and took off to the upside early in the day. In terms of the days overall trade, 1.26 million ES contracts traded, which is not bad considering the holiday.

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.

Original post