Federal Reserve Chair Janet Yellen’s comments of reasons for a rate hike strengthening triggered a selloff in the stock market on Friday, sending the ES 30 points off its high, but the S&P 500 emini futures did not end the session as an outside day.
Futures volume was high but NYSE daily volume was relatively low at 3.3 billion compared to the size of the move in price.
The drop in the ES saw price break below the previous weekly low and through the prior multi-day trading range low at 2165.50, filling the gap and trading through the very prominent point of control from Aug. 4th.
An important trading reference for Monday, should the market open at the lower end of Friday’s range, could be the late day rally high at 2170.25. Failure to trade with acceptance back above that level could keep the downside breakout intact.Share