S&P futures sold on Friday, pulling back below the opening range high at 2068 and trading down to 2044: - 23 points, before auctioning up to 2056 (+12 points) into the close.

Friday’s sell-off marked the end of a 47 points rally above the 02-04-15 low at 2021. The rally extended the January trading range by a modest 6 point above 01-09-15, 01-23-15 highs at 2063.

At the open of Sunday’s globex session, S&P futures “gapped” down 14 points below Friday’s closing range high at 2056 and sold down to 2048; 2 points below Friday’s low.

  

Despite the so-called positive economic data Friday’s rally indicated there is still no significant buying interest above the January high.  The final up move above the 02-02-15 low at 1973 was nothing more than the completion of the short covering rally.

While Friday’s jobs report showed a 0.5% increase average hourly earnings, on an annual basis, wage growth is still stuck near the lowest levels recorded since the Great Financial Crisis. 

In January the number of

On Thursday the major U.S. indexes rallied above their prior day’s close. The Dow gained 211 points (1.2%), The Nasdaq composite gained 48 points (1.03%) and the S&P 500 advanced 21 points (1.03%).

On Wednesday’s the S&P sold off into the close and traded down to 2020 in the overnight session. Thursday’s rally broke-out above the prior day’s high and stalled at the 2058 price level.

Overnight S&P future traded relative “flat” ahead of today’s jobs data.  On the release of today’s data the rally in the S&P futures continued, with the S&P trading up to 2064, modestly above the 01-21-15, 01-07-15 highs.

Thus far, the S&P is up 45 points. There has yet to be a minor pull-back (10-14 points).

What might be deemed as near term support, i.e. the most recent day session low at 2030 is significantly below the current high? The previous day session highs (02-03-15, 02-04-15) are located at 2044 and 2048.

During Thursday’s rally there was a minor 8 point pull-back to 2048. Thus, the S&P has extended the trading range to the upside and appear to have resumed the climb the wall of worry mode.

In other words, astute observed will notice that following each initial “run”, long periods (1 to 3 hours) of 2 to 3 points HFT Market Marker algo patterns dominated the auction.  These periods of Market Marker Algo dominance impose limiting constraints on the market development.

Current reference points above the January highs are: 12-31-15 high at 2068; 12-28-14 all-time record high at 2089: prior record high at 2078.

 During Wednesday’s session S&P futures consolidated at within the parameters of Tuesday’s trading range for the majority of Wednesday’s session.

At Wednesday’s open S&P pulled back to 12 points below yesterday’s high 2044 and re-tested support at yesterday’s low 2034. The opening range pull-back was followed by a re-test of yesterday’s high and a minor 2 points higher high up to 2046: 14 points above the opening range low.

During the mid-day session price auctioned down 10 points below the opening range high 2046. The pull-back to 2036 was followed by at re-test of the opening range high. S&P futures made another minor 2 points higher high, trading up to 2048.

However, the rally up to 2048 marked the end of the buying interest. Late in the day S&P futures sold down below the 2048 high, traded below the mid-day low, as well as the opening range low, finishing the session at 2029.

At the open of the Globex session, the selling pressure continued. As of this post, S&P futures have sold off 26 points from today’s closing range high 2048 , pulling back down to 2022.

Coming into Wednesday’s session we stated thatIn the current

The first round of TradeOps beta testing ( our Auto-Trading Service) , which was limited to a very small number of participants, has been successfully completed.  
 
All defects surfaced from the first round of beta testing have been documented and have reviewed by our development team.
 
We anticipate having a design approach for the remediation of the current issues later today.
 
Once the design approach is approved for the remediation of issues, we will commence development schedule.
 
Upon completion of this development cycle, we will then initiate a second round of beta testing which will be available to a wider user population.
 
For those of you who are curious about the trading methodology that we are using for TradeOps, think "Pitch & Putt meets ...sceeto".
 
Thanks for your interest in this endeavor.
 
 
Interest or questions about TradeOps?
 
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All the best,
Carl Weiss

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