Nasdaq Composite Enters Correction Territory
MrTopStep | Jun 05, 2019 02:59AM ET
- In Asia 7 out of 11 markets closed lower: Shanghai Comp -0.96%, Hang Seng -0.49%, Nikkei -0.01%
- In Europe 9 out of 13 markets are trading higher: CAC +0.29%, DAX +1.14%, FTSE +0.24%
- Fair Value: S&P +0.28, NASDAQ +3.27, Dow +3.67
- Total Volume: 2.29 million ESM & 487 SPM traded in the pit
*As of 7:00 a.m. CST
h2 Today’s Economic Calendar:/h2Today’s economic calendar includes the 8-Week Bill Settlement, Charles Evans Speaks 7:00 AM ET, John Williams (NYSE:WMB) Speaks 8:30 AM ET, Redbook 8:55 AM ET, Charles Evans Speaks 9:45 AM ET, Jerome Powell Speaks 9:55 AM ET, Factory Orders 10:00 AM ET, Lael Brainard Speaks 3:45 PM ET, and Robert Kaplan Speaks 6:45 PM ET.
h2 S&P 500 Futures: Market Leader Nasdaq Falls/h2Chart courtesy of – $spx futures +15. We’ll see they type of bounce today as tech will be important.
The S&P 500 futures (ESM19:CME) gapped lower Sunday night to open the Globex session at 2741.00, down -11.50 handles from Friday’s close. It would then go down to print a low at 2731.25, and rally to print a high of 2752.00, then open Monday’s regular trading hours at 2751.00.
The morning trade consisted of wide, heavy, algo driven swings. The ES first traded up to 2759.75 after the 8:30 CT bell, then down to 2738.00, then back up through the opening range to a new high at 2763.75, all in the first 90 minutes of trading.
Once the new high was in, the ES turned around and set its sights on the Globex low, but stopped short, only making it down to 2735.00. Volume dropped significantly, but the selling pressure was still strong.
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At 12:30, James Bullard announced that an interest rate cut could be warranted to help lift inflation, and the ES reacted in kind, spiking up to 2756.75. After that, the futures pulled back to make a new RTH low by one tick, then ran back up to 2753.00, before going down to make another new low at 2728.75.
Going into the close, when the MiM came out showing $543M to buy, the ES was trading at 2735.75. It would then go on to rally, printing 2743.75 on the 3:00 cash close, and 2750.25 on the 3:15 futures close, down -2.50 handles on the day.
In the end, the overall tone of the ES was pretty weak. In terms of the days overall trade, total volume was high, with 2.2 million futures contracts traded.
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