On Wednesday night the S&P Futures opened near unchanged before tanking 20 handles down to the 1910 area on a slight miss of the Chinese manufacturing PMI number. During the Euro session, the index futures rallied back into positive territory up to 1941.75, roughly a 30-handle rally from the globex lows and up nearly ten handles on the day. However, buyers lost momentum on the US cash session open as the futures tried to rally and were unable to match the Euro session high and fell down to the 1920 area before paring some of its losses late in the day to close at 1930, down ten handles on the day.
Heard across the newswires yesterday was ECB President Mario Draghi stating that the European Central Bank could continue stimulus into 2016 if necessary. Midday in the U.S., the Atlanta Fed's Dennis Lockhart spoke reiterating that he was not opposed to the rate hike delay and sees global conditions as the key element to watch. He maintained that the Fed would need to wait for volatility to settle down and that any move of the Fed could delay until November, or possibly next year. Worth noting is that earlier this year in March, Lockhart projected in a speech that rates would be raised in September’s meeting.
Heading into Thursday, the stats have been mixed as well as late September. However, the economic calendar is a bit heavier with initial jobless claims, durable goods, and new home sales. The futures traded its regular trading hours session inside its globex range as the trend lately has been for the overnight session to be heavily active, but with a lighter economic calendar in Asian and Europe overnight we expect for a quiet globex trading going into Thursday’s session.
Floor Pivots For Thursday's RTH E-Mini
- R3 1965.50
- R2 1947.50
- R1 1938.50
- PP 1929.50
- S1 1920.50
- S2 1911.50
- S3 1893.50