Strong sell off in the Sunday night globex session and then strong rally in Monday’s cash session.

WOW, that was some excellent action from Sunday nights globex session into Monday’s cash session. The S&P500 Emini had a very directed move out of the Sunday night globex session open, with trade all the way back down to the 1025.50 level. This significant pullback allowed sellers, still holding some SHORT inventory in the old contract, the perfect and very convenient opportunity to cover out at break-even or better. The ES did find some buyers after the EU session open to support price which started a methodical grind up rally into the US cash session Monday open. Monday’s cash session trade continued the rally as equities buy program activity throughout the day was forcing the futures side SHORT covering. By the end of the day, the ES was parked very near the recent Friday highs setting up perfectly for that possible end of day equities side push. Did you get to see what happened next, that end of day Delta Volume order flow transition was just amazing……

Video 1 – Quicktime download link or for faster access, click below and use the MS Silverlight charts. Please Double Click on the MS Silverlight chart after starting to go to fullscreen view!

The S&P500 Emini trades to new highs as the resting SHORT inventory position grows

The ES traded to new highs just after the cash session open Friday of 1043.75 for the new contract. Within that first hour of the cash session, a solid sell response took control of the market as price traded down to the 1033.50 level for our low of day. The rest of the day was spent with trading back into the range and a close in the 1037′s area. Going into the Sunday night globex session and then into Monday, I will be looking for the ES to trade at least back to the low of the Delta Zone of price. Those still holding resting inventory SHORT in the old contract can then trade out at breakeven or better with any trade down to the 1035.00 level or lower…..we will see.

Video 1 – Quicktime download link or for faster access, click below and use the MS Silverlight charts. Please Double Click on the MS Silverlight chart after starting to go to fullscreen view!

Market trades back to the Delta Zone of resting inventory resistance

The ES rallied today under low volume as futures followed the strength in equities with the dollars added decline. While equities and commodities remain strong into the dollar breaking down we had a slow grind up day for the ES. The S&P500 Emini was able to trade back to the Delta Zone of 1035.00 to 1038.75 just ahead of rollover to the new ES contract. I am looking at continued strength in the ES as the dollar drop helps support equities and commodities at this time. So far commercials in futures are still holding short inventory into this equities strength.

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The S&P500 Emini spent the day in a tight rotational range with minimal action

The ES spent the day cycling within a tight range as sellers sold all rotations above the 1025′s level. The ES ended the day parked right back to that 1025′s area on a trade day with no range extensions offered. We traded the entire day between the 1018.50 and 1027.00 after hours session range, so I am sure tomorrow we will see some eventual range extension out of this area.

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Hope you all had an EXCELLENT holiday weekend!

The market the past few days has been in a very low volume upward drift which started Friday and then carried into the holiday globex session hours. I am an aggressive seller at this point, and I will take advantage of the price improvement offered as I build back up my long term held SHORT positions. Today should provide some great trading opportunities as the market neutralizes some of the holiday weekend low volume price action.

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The S&P500 Emini first tests near term inventory support and then ends the day with a test of near term inventory resistance

The market started the cash session today with a test of near term support of the 991′s in the first hour. The ES held 991.25 for today’s low of day which was 1 tick above yesterday’s 991.00 low of day (EVERYONE BUY, BUY, BUY, we have a technical higher low now…jk..LOL!!!). The mid part of the day held the 999.00 level for a high pivot prior to a pullback move to the 994.25 level. This pullback move drove held LONG inventory entered off the 991.25′s bounce to cover and go neutral. Right after those neutralized LONG holders were turned into weaker hands, the equities side started their BUY program fun for our late day rally. The ES traded all the way back up to near term inventory resistance just into the last minutes of the close with 1003.25′s traded…..cool!

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The ES makes a new lower low of 991.00 traded on a rotational price tight-range day

The S&P500 traded in a tight range on Wednesday which is not that out of the ordinary after such a big sell off day prior. The ES did make a lower low from the previous day down to the 991.00 level traded. The overall day was slow and the FED meeting minutes release did not really add any price reactivity, so the final portion of the cash session saw the ES fall off to near the days low….that day was a sleeper.

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The S&P500 breakdown begins

The ES provided some very interesting swings of price/order flow in the set up to our near term support break down move. The ES made wondrous swings of price from new lows in the after hours session of 1010.75 to an intraday high of 1027.75, and the fun didn’t stop there! Sellers took charge for the last act today and initiated strong selling in response to the high of day (1027′s) area being traded. Next you need to see what happened in the context of Delta Volume Distribution……

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S&P500 Emini near term support is tested again but no breakdown just yet

The ES sold down close to near term support in the pre-market, and then traded as low as the 1013.25 level in the opening 30 minutes of the cash session. After the ES traded to the 1013.25 level, price cycled in a small range near the days lows. We ended this somewhat uneventful day with a minor SHORT covering rally back to the 1020′s pricing levels. Today the market had several perfect opportunities to breakthrough this near term support, and then drive the held accumulated SHORT inventory from the past weeks well into the money.

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New highs traded early at 1038.75 as sellers build their SHORT positions

Right out of the US cash session open we had a gift to be able to sell the 1038 area as resting held SHORT inventory showed no signs of covering. Actually, sellers used the excellent price improvement opportunity to build their growing held SHORT position. So what did the market show us next, a sell-off down to a low of day 1022.00 touch. After 1022.00 was traded, the sellers called it a day for the most part as a grind up recovery off the days low followed into a 1027′s close before the weekend. It does look like the S&P500 Emini will attempt another test of near term support soon with a likely probability of additional downside range extension. Take a look at this chart/video and see what I am looking for as we trade into Monday;

http://www.charthub.com/images/2009/08/29/FulcrumTrader_F1_4.png

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