Can they hold? OPEX should add some volatility early today.

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Our View

The dominant factor in the index markets has been and still is the ongoing liquidation in the Nasdaq. Like I said, when you see constant selling in the NYSE and Nasdaq 3:50 closing imbalance and the 4:00 cash close it eventually plays catch up. Powell's comments about the bank taking its time in deciding how quickly to lower interest rates only added to the tech weakness.

A couple of times last week and this week I mentioned that the ES acted tired and was over extended, yet I continue to say ”buy the pull backs”. Despite the NQ push to a record higher high there has been something going on under the surface, the non-stop selling in the Nasdaq. Again, I don’t know for sure who is unloading, but what I do know is it's a massive amount of selling and it doesn't matter if the markets are going up or down, the NQ selling continues. Am I surprised by the sell off? No. The ES has given back less than one third of the Trump 320 point S&P rally.

Monthly OPEX expiry today after this rally should give us decent opening and selling imbalances.