Why I’m looking for a catalyst to get things moving

Friday’s session caps off a rather
quiet holiday week
. Nothing much has happened as of yet… one more day to go.

ES (+$50 per index point)

S&P 500 futures were all over the map inside a
9.5pt total span yesterday. With the Dow red and NDX green for most of the
session, this is exactly the type of rolling chop fest one would expect.

Reminds me of the FOMC days back in year 2000
when the Fed would raise interest rates, and Dow would drop -200 points while
the NDX would rally +150 points at the very same time. (Yes, you read those
number right. The NQ used to average more than 100 index points intraday range
from open to close, with numerous NQ sessions exceeded a 200-point total span.
By the same token, the ES commonly traded 20+ point to 30+ point intraday
ranges, occasionally bigger. But I digress.) When this dichotomy happened, the
SPX / OEX would remain pinned very sideways and buzzy. Similar pattern to what
we saw on Thursday.

(+$100 per index point)

Russell 2000 futures were quite methodical by
comparison. An early move lower offered at least +2pts potential, then the
reversal upward was good for +3pts to +5pts before a late-day drop offered
another +4pts potential into the close. In the end it was a session that
accomplished nothing from a close – close basis, but intraday action was solidly

ES (+$50 per index point)

S&P weekly chart shows the post-holiday stretch
here as one micro-range candle. In other words, the market went nowhere and did
nothing so far, with one session left to go. Unless price action posts a
monumental move, it was merely a week of rest.

(+$100 per index point)

Depending on how we elect to draw our trend
lines, the Russell is either on the verge of breaking out upside or it already
has with one more session to complete this picture. Still a very tiny range for
the shortened week, unless they really show us something spectacular today.


No visible signs of a breakout or breakdown pending today, although anything is
possible at any time in any financial market. As usual, we’ll play the clear buy
/ sell signals when they come and let the accounts settle their balance from

Trade To Win

Austin P


(Online video clip

open access)

Austin Passamonte is a full-time
professional trader who specializes in E-mini stock index futures, equity
options and commodity markets.

Mr. Passamonte’s trading approach uses proprietary chart patterns found on an
intraday basis. Austin trades privately in the Finger Lakes region of New York.