Futures Rolled Overnight, And The Gap Everyone Saw Wasn’t Real

Generally speaking nothing has changed dramatically, and all eyes remain on Wednesday’s FOMC, which traders seem to be anticipating. Bunny fingers time. “…drama…”

Right then, let’s get into the charts.

https://youtu.be/GZEtLXNWw20

Market Snapshot

The futures have changed contract and wish to apologise for any alarm caused by the resulting appearance of a gap.

• SPX 7,619.98, down 37.00 (0.48%). The gap has been filled on the rally. Full read below.
• RUT 2,892.24. Drop, pause, and the next drop starting. Full read below.
• BTC 76,838.42, down 1,336.59 (1.71%). Making a run for the range low. Full read below.
• ES 7,653.75. Price only today, see the roll below.
• NazQuack (NQ) 29,285.50. Price only today.
• Uncle Dow (YM) 52,522. Price only today.
• Uncle Russ (RTY) 2,875.0. Price only today.
• Crude (CL) 103.42, up 1.53 (1.50%). No read today.
• Gold 4,315.0, down 25.0 (0.58%). No read today.

VIX 17.81, up 0.70 (4.09%).

VIX could remain elevated for the 3rd consecutive day without retreating behind the 16 level.

The Futures Roll – Gets me every time, on continuous futures.

Futures markets have rolled on the indexes overnight, so a fair few people may have panicked a little after the Asian reopening of the futures, seeing what looked like a huge gap up.

The gap was real. The move wasn’t.

Anyway, the extended hours on the ETFs show a more realistic view of the markets selling off overnight.

The ETFs show the more realistic view. (orange premarket lines)

SPX – The gap has been filled on the rally.

Over on the SPX chart the gap has been filled on the rally, and with the premarket dropping like a collective brick in the ocean, we are likely to open outside of the range we have been eyeing.

Will this move be the one that starts my elusive 10%er?

Fingers crossed.

RUT – As always, looks a little clearer.

Drop, pause, and the next drop is starting overnight.

The system remains bearish.

Crypto, BTC – Might be making a run for a range low break.

BTC also looks like it might be making a run for a range low break today.

A run for the range low break.

Wall of Wins

And of course the community is reporting some small wins despite the yoyo day. Well done team.

• Ross M. A $430 win on futures, running the futures version of the system.
• Don E. Closed SPX LP for 50%.
• Scott K. BO1 on SPX, transformed to a 5 cent profit, closed outside the profit window for a break even day. Given the yoyo day, that’s a great result.