Jitters And Calm
A jittery market calmed down at midday after a reported explosion at a Texas refinery, but the trade remains contained.
S&P futures traded back up to 888.70 on short covering by local traders, but a quick failure ensued that brought the market back down to 885. We expect consolidation over lunchtime.
As we stated in the Morning Meeting, only a 30-minute close above 890.50 would open the door for more upside extension.
Nasdaq, meanwhile, printed 925, but was unable to hold a trade at this level. We expect more choppiness between 925 and 915, with a directional move only after the market manages to break out of this band.