Equities Just Can’t Seem To Catch A Break
MrTopStep | Aug 26, 2015 02:04AM ET
The Short n Sweet of Tuesday’s Trade
After the S&P 500 futures (ESU15:CME) ran up during the overnight session, it left us speculating it had done too much too soon going into the cash open. At the regular-trading hours open, the MiM was showing a huge sell side imbalance as the index opened near the high of yesterday afternoon, testing the 1950.00 level. From there it back and filled as it couldn’t sustain a bid as it sold nearly 40 handles post lunch in an orderly fashion. Early in the final hour the MiM was again showing large to sell and the market-on-close came in at 2.9 billion to sell. As we saw that dip, buyers have yet to find any real conviction, and thus the index sold off more than 60 handles in the final hour before bouncing at 1860 and closing nearly 15 handles from the low.
Equities just can’t seem to catch a break as many of the historical statistics suggest that the price action that is occurring since last week is historical. Today’s volume was again well over it’s moving average as sellers refuse to give up, and at this point, why should they? Tomorrow’s economic calendar is light but that shouldn’t matter as another day of swing, volatility and wide ranges should be in store. Area’s to watch on the futures are Monday’s low of 1831.00 and the area of Monday’s & Tuesday’s RTH high around 1950. For bulls to begin to take charge they need to not only control the overnight but also the open through the close and manage to rally past 1950.00 on the ESU15.
We’ll leave it at that!
Tomorrow’s Notable Earnings: Guess ? (GES) Royal Bank Of Canada (RY) Williams Sonoma Inc (WSM)
Tomorrow’s Economic Calendar:
MBA Mortgage Applications 7:00 AM ET
Durable Goods Orders 8:30 AM ET
William Dudley Speaks 10:00 AM ET
EIA Petroleum Status Report 10:30 AM ET
2-Yr FRN Note Auction 11:30 AM ET
US 5 Year T-Note Auction 1:00 PM ET
- Open: 1946.75
- High 1947.25
- Low: 1860.00
- Close: 1873.75
- Volume: 3,624,240 total
- MOC: 2.9 Billion to Sell
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