You all really bounced off your XJO 20-day average yesterday and looks like XSO off somewhere around the 17 EMA? Maybe you were front running these wise guys here…good on you. Short covering here today judging from the tempo and the single print run higher to ES 4132 from the cash open. Bottom line: bulls were in control again in the early session.
SPX is currently trying to stage a reversal of yesterday’s action. NYSE and NASD breadth (volume ratio) were moderately strong at +5:1 and +4:1 and A-D lines are pretty much the mirror image of yesterday's action at +1600 to +1700. This is just a contextual point to be aware of on any move. As of noon, we have NYSE breadth still at over +5:1 and NASD breadth even stronger at the highs of +7:1. Implied volatility per VIX is -5% at 17.74, but that could change a bit. Treasury notes are slightly weak but stable.
Correction: Yesterday's ES volume point of control was 4123. This is also central to the area where most time was spent during that rth session.
ES futures opened near the center of yesterday's value area and saw sector rotation, with materials, industrials, and consumer discretionary taking share during initial NDX weakness. But then tech stocks joined in, and that is when ES ran to the 4140 area where it stayed for a while before going hovering just below yesterday's early high of 4151. It did not take long bulls to come in and buy that right through to 4153, near where we have pared off at lunch. It is early here but that is the general tone of the day.
