The US congress returned from summer break today and immediately we are bracing for a government shutdown as Republicans are refusing to support an initiative to keep the federal government funded past Sept. 30 without considerable spending cuts and tough new border policies.
These political headlines on the periphery should have major affect on price action for the next few weeks. Maybe even some serious vol. Fingers crossed.
The overnight and early pressure downward on futures had something to do with this news I am guessing, but super important CPI data tomorrow morning and an expectant positive number held up the market and we remained in a 30 point range which has been the average the last few trading sessions.
A slowdown in Oracle cloud sales after the company reported dented the NQ today.
Looking at the two charts above there were a few opportunities in the market today. My Edge formed perfectly at 12.34pm and 15 ES points were there for the taking. A hard rejection at the ONH - overnight high, and a nimble trader could’ve had at least 30 points to the downside. Additionally if you look at the chart of the NQ - blue bars, you will see the NQ started selling off exactly the same time ES did at 1.35pm. That’s why I always use the ES chart as my principal chart to trade the other indices: wherever the ES goes the rest will follow.