The ES held sideways within Friday’s six-point total chop range all day, from premarket (not shown) past 3:30pm eastern on Monday.
The NQ staged a decent downtrend swing apart from the S&P… looks like one of the big horses in that narrower index tripped while going over the cavaletti.
The CL made a sharp plunge right from its open of pit session, which I narrowly missed a short fill. The staccato ascent yielded -10 cents, -10 cents and then +20 cents stopped on a long from 95.95 that went 60+ in favor and right back down.
Another nothing day in ES, stealth trend day in NQ and v-shaped range day in CL. The financial world awaits news out of Europe on Wednesday and FOMC on Thursday. No news? No market action. That’s pretty much the state of circa 2012.
Stock markets are clearly stating that big-money participants are not active, not trading, not even present at this time. I don’t recall the last time I saw ES this utterly dead… maybe 2006, but I almost think it’s even worse now than six years ago. Perhaps volume and volatility return to some semblence of norm past the Euro and FOMC uncertainty by Friday or into next week. One thing we can be sure of: 5-point daily ES ranges for the rest of this year would result in cessation of trading that symbol for everybody as it implodes.
I’m betting a return to normalcy if not snapback to equal measures extreme higher volatility ahead are much more probable instead.
For more daily updates from Austin, visit his blog at Coiled Markets.