one chart rules

Look, if you’re wondering about why August has been choppy and there has been a bit of a drawback in momentum…

Then Citi provides the answer.

SPX Futures are near 6 year LOWS in volumes traded.

And Goldman backs up this chart with their own.

One thing I hope they aren’t wrong on though is this…

The ES has pretty much been the destination for trading the SP500 on a futures basis, NOT SPX futures which is a different contract.

If we look at ES top of book depth (liquidity), it’s not THAT bad.

But it’s definitely lower on average than previous times.

But if you’re wondering why August has been and is choppy right now…

It’s because of liquidity.

And when that liquidity comes back, the market goes up again since there are more MARGINAL BUYERS.

The above topic we cover in the Academy.

Complete the Assessment and book a call to have a chat about it with me.

What the market is looking to for next week is a springboard.

I’d be quite happy with a dip with the ability to bid into Nvidia earnings, since I reckon it’s still going to be a blockbuster.

Have a great weekend.