Adios Volatility
Sector rotation is the theme rolling through a quiet session in the equity futures complex. Dealers have been better to the buy side of the equation all morning. But, in general, this has been a tired session with little volume.
I still think 1450.50 is the key. Above this level on a settlement basis, it should take some of the short-term pressure off the SPU. For the remainder of the session, how we handle the air up between 1447-1449 is the key. If dealers become active, we may trade up to the 1455 zone, but this should produce selling. In fact, I think the odds of a settlement above 1450.50 are slim. Therefore, I am looking to sell any move above 1450 for a move back towards the 1439 area.
If I sound somewhat confused about the next move, it’s because I am. Volume has been light and players are waiting on Friday’s nonfarm payroll. Therefore, I recommend cautious trading over the next couple of sessions.