When sellers outnumber buyers on a Sunday night, the arse-bandits who run this gaff typically take the index futures down far enough to exhaust supply; then they wait for a few buyers to show up so that they can goose the E-Minis higher on little or no volume. Tonight, however, timidity apparently rules, since there is insufficient interest on either side of the market to jockey ES around. The futures are currently trading an insignificant 1.75 points higher after being down as much as 7 points. My hunch is that if the broad averages open moderately higher Monday morning, ostensibly on good earnings news from Caterpillar, you had better look out below, since it would mean that that’s the most DaBoyz are capable of milking from opportune news. Whatever the case, we’ll be able to read their hole cards after we’ve seen how a follow-through attempt to the downside (see graph) interacts with the midpoint pivot.
