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Futures Relationships between the Mini S&P and Mini Russell 2000 5.15.2014

Connect with Us! Use Our Futures Trading Levels and Economic Reports RSS Feed.

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1. Market Commentary
2. Futures Support and Resistance Levels – S&P, Nasdaq, Dow Jones, Russell 2000, Dollar Index
3. Commodities Support and Resistance Levels – Gold, Euro, Crude Oil, T-Bonds
4. Commodities Support and Resistance Levels – Corn, Wheat, Beans, Silver
5. Futures Economic Reports for Thursday May 15, 2014

Hello Traders,

For 2014 I would like to wish all of you discipline and patience in your trading!

 

I wrote a quick paragraph about observing the relationship between the mini Russell 2000 and the mini SP 500 yesterday and I got a response from one of our readers that I thought is worth sharing and has some good observations, so here is below with very minor edits:

 

 

Hi Ilan,

 

I received your comments about Russell leading SP’s in tonight’s email, and as someone who has been watching and studying this relationship for over 5 years, I wanted to make a few comments.

 

Russell 2000 does tend to lead other Indexes on larger time frames like daily and larger intra-day charts like 30 min and higher. However nothing is a simple as it seems of course. And one of the biggest reasons it is not simple is because large traders and institutions know that small traders are trying to get clues from TF to trade ES, and I have seen many times where they will come in and start buying Russell and a few minutes

later start selling much larger size in ES.
Also, quite often these two Indexes will trade without any correlation at all shorter term, not sure if you saw closing minutes of Monday’s trading where TF dropped 7 points in a few minutes and ES did not budge. And then there is a matter of difference in liquidity of course, sometimes I see quite opposite take place – where ES starts moving and TF is sitting there, and it’s not until ES moved two whole points does TF starts to move a little, this happens because TF buyer will have to give up a lot of edge to buy any kind of size, and they need to see a decent move in ES before they will buy TF.

 

What I described above is a very small example of what happens between these two Indexes, it is important to understand that what seems to be correlation short term, in access of 80% of the time will not produce desired results. With that said….there are instances when TF’s lead is obvious, but it takes quite a bit of time to learn and understand mechanics behind it, I am afraid comparing two intra-day charts will not shed any light on this relationship, there is too much more going behind “the scenes”

 

Sincerely,

Simon B.

 

 

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GOOD TRADING

Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.

If you like Our Futures Trading Daily Support and Resistance Levels, Please share!

Futures Trading Levels

Contract June 2014  SP500 (big & Mini) Nasdaq100 (big & Mini) Dow Jones (big & Mini) Mini Russell Dollar Index
Resistance 3 1909.42 3644.83 16805 1136.33 80.32
Resistance 2 1903.33 3629.92 16749 1128.17 80.25
Resistance 1 1894.42 3613.08 16668 1114.93 80.18
Pivot 1888.33 3598.17 16612 1106.77 80.12
Support 1 1879.42 3581.33 16531 1093.53 80.05
Support 2 1873.33 3566.42 16475 1085.37 79.98
Support 3 1864.42 3549.58 16394 1072.13 79.91
Contract June Gold July Silver June Crude Oil June Bonds  June Euro
Resistance 3 1330.2 2051.5 103.32 138 10/32 1.3762
Resistance 2 1319.7 2026.0 102.99 137 25/32 1.3746
Resistance 1 1312.6 2002.0 102.50 137 13/32 1.3729
Pivot 1302.1 1976.5 102.17 136 28/32 1.3713
Support 1 1295.0 1952.5 101.68 136 16/32 1.3696
Support 2 1284.5 1927.0 101.35 135 31/32 1.3680
Support 3 1277.4 1903.0 100.86 135 19/32 1.3663
Contract July Corn July Wheat July Beans July SoyMeal July bean Oil
Resistance 3 507.5 693.0 1512.83 500.27 41.99
Resistance 2 505.0 692.3 1500.92 493.63 41.83
Resistance 1 500.3 691.3 1493.83 490.07 41.61
Pivot 497.8 690.5 1481.92 483.43 41.45
Support 1 493.0 689.5 1474.8 479.9 41.2
Support 2 490.5 688.8 1462.92 473.23 41.07
Support 3 485.8 687.8 1455.83 469.67 40.85
5. Economic Reports

source:http://www.forexfactory.com/calendar.php

All times are Eastern time Zone (EST)

Date 4:16pm Currency Impact Detail Actual Forecast Previous Graph
ThuMay 15  1:30am EUR French Prelim GDP q/q 0.4% 0.3%
2:00am EUR German Prelim GDP q/q 0.7% 0.4%
4:00am EUR ECB Monthly Bulletin
EUR Italian Prelim GDP q/q 0.2% 0.1%
5:00am EUR CPI y/y 0.7% 0.7%
EUR Core CPI y/y 1.0% 1.0%
EUR Flash GDP q/q 0.4% 0.2%
8:30am USD Core CPI m/m 0.1% 0.2%
USD Unemployment Claims 321K 319K
USD CPI m/m 0.3% 0.2%
USD Empire State Manufacturing Index 5.5 1.3
9:00am USD TIC Long-Term Purchases 32.3B 85.7B
9:15am USD Capacity Utilization Rate 79.2% 79.2%
USD Industrial Production m/m 0.4% 0.7%
10:00am USD Philly Fed Manufacturing Index 13.9 16.6
USD Mortgage Delinquencies 6.41%
USD NAHB Housing Market Index 49 47
10:30am USD Natural Gas Storage 74B
7:00pm USD Fed Chair Yellen Speaks

This is not a solicitation of any order to buy or sell, but a current market view provided by Cannon Trading Inc. Any statement of facts here in contained are derived from sources believed to be reliable, but are not guaranteed as to accuracy, nor they purport to be complete. No responsibility is assumed with respect to any such statement or with respect to any expression of opinion herein contained. Readers are urged to exercise their own judgment in trading.

Tags: > > > Posted in: Future Trading News  

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