Bulls Try to Maintain Momentum Into September

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Our View

It's a new month and with it comes new obstacles. A lot has to be crammed into the first four trading sessions of September. There are 14 economic releases, Treasury auctions, and the week ends with the July jobs report and two Fed speakers on Friday morning.

The wider view of the ES is one of a few selloffs under 5600.00, but also a ton of back-and-fill above and below the big figure at 5600.00. Every time the ES made a low under 5600.00, the futures rallied, jumped back above 5600.00, and fell right back into the 5600-5660 trading range. 

The NQ seemed to shake off the rotational selling — and guess why? There was over $10 billion to buy on Friday’s NYSE 3:50 imbalance. It was very well orchestrated. The ES and NQ started selling off around 10:45 and dropped 52 points, making a low just after 12:30. They rallied up to the 5622 level, made a low at 5608.75 at 2:00, and then rallied 56.25 points up to 5665.00 at 4:00. 

All the action is in the first hour and last hour.