Short Term Trading Week Starting: 4 Mar, page-27

US Mid-Session Update

Some out of the blue liquidation going on here and you can see what happened by having a look at the ES profile. I can find no specific headline that coincides with the action but I'm sure there will be many rationales put forth by the end of the day. The House Judiciary Panel did release a bevy of requests for information and materials to many within the president's circle, today. These are individuals who were mentioned in last week's testimony by the president's former attorney. The Panel threatened subpoenas if said persons were not forthcoming. Also note that there were pre-market media reports/rumors that the Office of Special Counsel might release its report to the AG soon. Today’s action looks like a sell the news event based on an abundance of caution unless there is something I have missed.


US SPX futures were in go-mode overnight ostensibly on reporting from WSJ on the possibility of a grand trade deal. Chinese indices helped that situation before they backed off into the close. European indices are not helping out today. Note that the overnight ES session high of 2919.75 surpassed last week's high of 2814 which was put in during the 25 Feb cash equity session. The overnight futures hit the area around the resistance created on 16 Oct., 7 Nov. and 3 Dec. Those dates will be slightly different if you look at the SPX cash chart and will not include 3 Dec. The ES single print break lower paused around 2785 then fell through to 2775 and a bit lower. It sits now around the area of support formed at the bottom of 27 February's cash session. That is still above the unfilled gap mentioned last week -- 2758-2763. SPX with A-D lines.

Here is the 10 day/30 minute ES chart which includes the overnight session. NYSE breadth is quite depressed as of this note and that does not look like a foundation for a rapid intraday recovery.