Index Futures Net Changes and Settlements:
Foreign Markets, Fair Value and Volume:
- In Asia 10 out of 11 markets closed lower: Shanghai Comp -0.32%, Hang Seng -1.52%, Nikkei -1.98%
- In Europe 11 out of 13 markets are trading lower: CAC -0.18%, DAX -0.62%, FTSE -0.54%
- Fair Value: S&P +0.50, NASDAQ +7.84, Dow -9.95
- Total Volume: 1.4mil ESU & 562 SPU traded in the pit
Today’s Economic Calendar:
Today’s economic calendar includes a 4-Week Bill Announcement 11:00 AM ET, a 3-Month Bill Auction 11:30 AM ET, and a 6-Month Bill Auction 11:30 AM ET.
S&P 500 Futures: Futures Take a Friday Dive
After trading weak in the overnight session, the S&P 500 futures printed 2837.00 on the 8:30 open Friday, down -16.50 handles. From there, the future traded up to a 2841.50 opening high, and then sold off down to 2832.00 in the first hour. After that, the ES rose to the late morning high of 2843.00, just after the Euro close, which would be the high of day, and then chopped weaker into the midday.
The early afternoon saw a wave of sell programs, pushing the ES down to 2826.25 just after 1:30, on what would be the low of day. After a bounce up to 2838.50 in the final hour, the ES sold into the close, printing 2833.75 at 3:00, before settling the day at 2837.50, down -16.00 handles or -0.60%.
Mutual Fund Monday
Our View: Mutual Fund Monday has returned, as 11 of the last 15 Monday’s have closed higher. This week starts off with a slow economic schedule as the summer is winding down. The futures firmed up overnight, and we think Friday’s low for the PitBull expiration rule will hold, as the price action will look similar to late July when the ES sold off on a Friday then rallied the next week.
Our call; unless momentum and volume picks up on the downside, continue to buy dips, looking for 2850 then 2878.
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