New Delta Zone of inventory support now in place…1042.75′s to 1046.25′s

We are taking profits into the sell-off move down through the 1048′s in the S&P500 Emini so far….next set of profit targets now resting at the 1043.00 level. That was an excellent SHORT fade of the intraday ES rally….now we will be tracking the newly formed Delta Zone of held LONG inventory support shown in orange horizontal lines on our chart today.

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.

Video 1

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.

Video 1