It was a volatile overnight session, not only for US Index futures (ES) which fell almost 20 points from overnight highs, but the Nikkei 225 which saw a nearly 500 point drop.
Interestingly this volatility was blamed on a strengthening $USd in the overnight session. This is some of the most ridiculous analysis and commentary on overnight markets I've seen.
Yes the $USD was volatile overnight, but look at the time when it was volatile, shortly after the European open and again shortly after that.
ES futures had gained and started losing long before the $USD volatility.
However the ES volatility did put the open exactly where we'd expect it for an op-ex Friday max pain pin and the chance to move to make a wider base...
The pre-market level is at the red arrow, just off yesterday's close as ES moved so the cash market will pick up where it left off and nearly exactly where it should be or usually is on an options expiration Friday. To make a wider base, price needs to head down to the red trendline.
As for Nikkei Futures, again looking at the timing you can't blame the $USD, perhaps you can make a better argument, but they lost all credibility on the Futures argument first...
As we have been expecting, oil came down overnight as we have expected a pull back and a retest of the lows for 2015...
J?ust yesterday I posted I still expectted oil and gold to come back down.
Speaking of which, gold has come down as well...
The third reading of Q4 GDP missed consensus of a revision to 2.5%, coming in unchanged at 2.2%
We also have Yellen on deck today so the market will be parsing her every pause or drone.
Have a great day ahead, time to get to work.
No comments:
Post a Comment