With a Rate Hike on the Way, Are the Highs In?

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If you don't know who Rich Miller is you should follow him — @HandleStats on Twitter. Rich was a trader in the S&P pit, went to work for the CME's Globex department, then moved to Colorado. He is a quant that has done more than 14,000 hours of coding and has one of the most extensive databases I have ever seen.

Rich started working with MrTopStep ~18 months ago and the harder he works, the better it gets. He has range stats, VIX studies, gap stats, seasonality stats — pretty much every stat you could think of.

Pivoting to the S&P, we finished on a three-day skid as pointed out in our weekly preview on Sunday evening. The ES is struggling with ~4500 — the Q2 high — and now the calls for higher rates are growing louder. Bonds are trading poorly and it’s got some investors wondering if we need a larger washout.