SPX futures came off the overnight session net long and the RTH ES profile is off its highs and has flirted with the overnight low of 2549.25 after making a very skinny cash session high at t 2581.25. It is currently back up above yesterdays value area and point of control at about 2562. If ES can't hold the bottom of yesterday's value area at 2545.75, it could travel through the single prints from Monday's session all the way into Friday's value area. Bulls are hoping we stop here and balance out yesterday's session. This back and fill action would be viewed by some as healthier than continuing a low participation single print run above 2570, which was a short-term target for many bulls. If the market can stay over they SPX 2 April intraday low today it would be viewed as constructive but also seen in the context of prevailing nervousness that comes with severely broken technicals and chaotic domestic and foreign policy. SPX daily with levels.
Today's balancing action comes as traders are nervous ahead some announcements about the need for the Great Wall. The president is said to be mulling an emergency declaration in order to appease his base. He enjoys his ability to keep everyone off balance, reeling from one tweet or press conference to the next. As for trade negotiations, things are progressing according to the White House but are stalled with respect to tech issues according to more reliable sources.
Internals at Mid-Session
Breadth declined from the open but are above the neutral zone. NYSE A-D Lines: +1139. NYSE breadth: +1.83:1 and NASD breadth: +1.22:1. NYSE cumulative TICK: trending very flat. TRIN: 1.29.
VIX 21.01 or (-1.92%) is subdued, not budging much while /VX term structure (VIX futures) is still tail up and the front month VXF19 21.15 or (-1.47%). Light crude futures are up +2.64% and that is offsetting the Financials - the only negative sector - from dragging things too much.
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